I think the "Lifestyle Degradation Policy" might be referring to (for one example) the meddling with rosters, such as manually inserting a turnaround into a string of days off. Whether this is "policy" or not is semantics, it certainly has the effect of degrading the lifestyle of those hoping to use the days off for some specific purpose aka escaping to reality for awhile.
The overtime threshold increase, aka "New Flight Time Target", where monthly work was increased from 78 hours to 92 has definitely had some detrimental effects on lifestyle. Not to mention on health, marital stress, and the ability of small children to recognize the grumpy, groggy zombie who occasionally drops by the villa that they used to call "daddy".
And on it goes. But hey we're all to blame for joining, right? It's all in the "contract"...