The policy doesn't seem confusing or hypocritical to me at all... It seems like BYU is saying, "You need to be responsible for and decide for yourself what your Sabbath worship looks like. If you've spent Sundays playing sports, we're not going to condemn you for that. You can come play with us. If you think the Sabbath isn't a day for sports, we're never going to ask you to violate that principle you live by."

It would be like me telling my Mostly-Jewish competitive eating team, "I don't know which of you guys live Kosher or not, and I'm not here to judge how you've chosen to compete before, but on Tim's Mostly-Jewish Competitive Eating Team we will never eat non-kosher hot dogs in practice or competition. So you can come eat for me, and if that's a rule you want to live by, you'll never have to worry about being forced to break it on my team."

This rule/policy gives players more freedom: If you don't really care about playing on Sunday, you're still free to play here or anywhere else you can make it, as long as you can live up to the team's rules (for example: if you're at Utah you're not supposed to get DUIs). If you're one of the (maybe very few) Mormon athletes who is trying to live by a personally-held no-sunday-play standard but you're good enough to compete at a D1 level, we've committed to being one place you can be confident you'll never be asked to violate that principle.

*I don't have a mostly-jewish competitive eating team, but I'm actually in a pretty unique professional position where I could make this a reality. Let me know if you'd like to be a sponsor or have good team name suggestions.