According to winchester: It means, "Extra care in fitting, extra deep gleaming finish on the genuine american walnut stock, and extra polishing on exterior metal, for a rich perfectly uniform blue".....
So fighting the post '64 blues. Interesting. I guess that's that whole idea behind the "classic action" CRF.
In a way, you are correct. The early post 64's left a bad taste in the mouths of gunwriters of the time (JOC for example), due to the cheapening of the model 70. Of course, we all know that, but the XTR helped dig them out of a hole they dug for themselves.