it's simple... Transport Canada (such as they are) has to approve the move. The regs are clear, if you stay within a certain distance from land or don't fly over water, you don't have to carry the life jackets. Whether it's a psychological help to passengers is not an issue for the company or the regulator. If it saves money these days it's a move that probably needed to be made. Would you rather keep your job or lose it due to indifference from management?