Why is the device status on ESX shown "degraded"?

Today I would like to touch upon a specific  field in command output "esxcli storage core device list" related to "Status" of the device.

~ # esxcli storage core device list
naa.90090160c1e01de150060160c1e01de1
   Display Name: DGC iSCSI Disk (naa.90090160c1e01de150060160c1e01de1)
   Has Settable Display Name: true
   Size: 0
   Device Type: Direct-Access
   Multipath Plugin: NMP
   Devfs Path: /vmfs/devices/disks/naa.90090160c1e01de150060160c1e01de1
   Vendor: EFG
   Model: ABD
   Revision: 0326
   SCSI Level: 4
   Is Pseudo: true
   Status: degraded
   Is RDM Capable: true
   Is Local: false
   Is Removable: false

This field for the device is specifically reserved for indicating the path status of the device.When the device has more than one path to the target( storage array), the path status is "on". When all the paths to the target are down ( either off / dead ) the device status is "dead". If  there is only one path to the target then the status is "degraded".

Also note that when the device is in PDL( Permanent Device Loss , This scenarios arises when a device is  unmapped from the storage array while  ESX was using the device) the status of the device is "not connected".

If ESX fails to recognize the state of the device ( if all above mentioned scenarios are not applicable) then the device status is "unknown".