It's actually flawed because there are other things that need to be done in a week besides work, recreation, and rest. For example:
- eating: 12-15 hours/week
- making food (or travelling to get food): 7-10 hours/week
- showering, shaving, grooming: 4-7 hours/week
- laundry, cleaning, house chores: 2-4 hours/week
- commuting: 5-10 hours/week
- waiting in line (checkout lines, customer service reps, Comcast/DMV/insurance, etc.): 2-3 hours/week
And that's for me, and I'm single. If I had children, add to that:
- taking care of children: 15-20 hours/week
None of the above counts as work, rest, or recreation. If work stays at 8 hours, that leaves very little time for rest and recreation.
Cutting rest beyond that is physically unhealthy.
Cutting recreation beyond that is both mentally unhealthy AND physically unhealthy (I get all my exercise in my recreation time).