Wow! This is the final nail in the coffin for me.
I'm not going to complain, just accept that NZ is now a LCC and adjust my expectations accordingly.
It won't stop me flying with NZ, but it may make me consider other LCC's like Jetstar more as other than the lounge access I can now buy benefits like baggage, priority boarding, exit rows and so on regardless of status.
Disappointed though!