Canadian or even more generally English usage on capitalization is often a matter of individual choice, and I can remember when, at least for adjectives, a distinction like the one Anthère makes was taught in schools. But the situation is so muddled that writing guides simply ask writers to be consistent within their own works.. Translating "Français" as "french man" is acceptable, but I would prefer "French man" with a capital letter.
I have never before seen "french" regarded as correct when it actually refers to France as in "french man" (as opposed to in "french fry" or "french kiss"). IME, this could only be "French man" (or "Frenchman").
Sexism doesn't enter into this at all. "Frenchman" in one word that does have associated difficulties, but attitudes are by no means unanimous on this. The movement for non-sexist language does see it as sexist, but others of us would see the "a French person" as bringing unnecessary awkwardness to the language. Those afflicted with political correctness often draw the false conclusion that those who do not follow their solutions for non-sexist must be speaking in a sexist way. I certainly do not consider the word "frenchman" to be sexist.
While I agree with most of this paragraph as far as it goes, I don't see how you can conclude the first sentence from the rest of it. Clearly sexism *does* enter into the issue; the question is whether possibly unfounded worries about it outweigh other relevant matters.
But if you just mean <Sexism does not enter into my decision to use the word "Frenchman" to refer to a generic French person.>, then that's fine, I take your word for it. But sexism (to be precise, opposition to it) enters into *my* decision to use the phrase "French person" in preference. Heck, I even say "French person" when I know the person to be male, unless I wish to point out the person's maleness, which IMO is usually irrelevant to anything that I want to talk about.
The "-man" suffix used in conjunction with a nationality is often seen as somehow a racial slur. In Canada their has been a movement in the Chinese ethnic community to rename all geographical places with "Chinaman" in their names.
"Chinaman" *has* been used as a racial slur, at least here in California, although I don't know how it managed to evolve into one. But I don't recally ever seeing any *other* "-man" term used as a racial slur.
-- Toby