Straight from The Moffat's Mouth:
..."So it had to be the story of what really happened, that he's forgotten. Of course he didn't - he's Doctor Who! He doesn't do things like that!"
Well, that would seem to settle it.
Meanwhile, the bit about there being children on Gallifrey would seem to pretty decisively decanonize the Cartmel Masterplan and the Virgin New Adventures, since the Gallifreyan "Looms" in the books created new Time Lords as full-grown adults.
Were they ever in to start with? we've know for a long time there were children on Gallifrey - why would the Doctor need a crib and we saw both the Master and the Doctor as Children plus the third doctor mentioned being a young boy then of course you have Susan.