This questions extends on this question and on the given answer.
What this question is about:
Decoherence model. Consider a simple decoherence process modelled by $$\mathcal{E}\left(\rho\right)=p_0\rho+(1-p_0)\sigma_z\rho\sigma_z$$ with $p_0=(1+e^{-\gamma t})/2$ that acts on every qubit of a system individually.
Case 1. The effect on a GHZ state $$|GHZ^n\rangle=\frac{1}{\sqrt{2}}\left(|0\rangle^{\otimes n}+|1\rangle^{\otimes n}\right)$$ can be looked at by calculating $$\mathcal{E}^{\otimes n}\left(\rho_{|\text{GHZ}^n}\rangle\right)= \frac{1}{2}\left(\left(|0\rangle \langle 0|\right)^{\otimes n}+r(t)\left(|0\rangle \langle 1|\right)^{\otimes n}+r(t)\left(|1\rangle \langle 0|\right)^{\otimes n}+\left(|\rangle 1\langle 1|\right)^{\otimes n}\right)$$ with $r(t)=e^{-\gamma n t}$.
It is straightforward to interpret this density matrix. The off diagonals show how "quantum" the state is - how many quantum features it has. All this is considered in regard to $|0\rangle^{\otimes n},|1\rangle^{\otimes n}$ or "alive" and "dead" (if you will), meaning, that the only option of interpretation is whether the density matrix shows a superposition of "dead" and "alive" or a classical mixture of the two (or, to what extend, a classical mixture of "dead", "alive" and "superposition of dead and alive"). The decoherence rate obviously can be directly observed: $r(t)$.
Case 2. Now consider the effect of said decoherence process on the generalized ghz state $$|GHZ\rangle=\frac{1}{\sqrt{K}}\left(|0\rangle^{\otimes n}+|\epsilon\rangle^{\otimes n}\right)$$ with $|\epsilon\rangle=\cos\epsilon|0\rangle+\sin\epsilon|1\rangle$ and some $K$ to normalize the state. Again, we calculate \begin{align}\tag{1} \mathcal{E}^{\otimes n}(|GHZ\rangle\langle GHZ|)=\frac{1}{K}\left[\left(|0\rangle\langle 0|\right)^{\otimes n}+\left(c|0\rangle\langle 0|+se^{-\gamma t}|0\rangle\langle 1|\right)^{\otimes n}+\left(c|0\rangle\langle 0|+se^{-\gamma t}|1\rangle\langle 0|\right)^{\otimes n}+\left(c^2|0\rangle\langle 0|+s^2|1\rangle\langle 1|+cse^{-\gamma t}|1\rangle\langle 0|+cse^{-\gamma t}|0\rangle\langle 1|\right)^{\otimes n}\right] \end{align} with $c=\cos(\epsilon)$ and $s=\sin(\epsilon)$.
With this density matrix (1), it seems to be less intuitive to give an interpretation, because we are not able to write it in the form $$|0\rangle\langle 0|^{\otimes n}+|0\rangle\langle \epsilon|^{\otimes n}+|\epsilon\rangle\langle 0|^{\otimes n}+|\epsilon\rangle\langle \epsilon|^{\otimes n}$$ when using the definition of $|\epsilon\rangle$. It's not that easy to tell how (in respect to time t) one cannot observe superpositions of $|0\rangle$ and $|\epsilon\rangle$. Obviously, we could try $|\chi\rangle=c|0\rangle+s e^{-\gamma t}$ to get at least some shape $$|0\rangle\langle 0|^{\otimes n}+|0\rangle\langle \chi|^{\otimes n}+|\chi\rangle\langle 0|^{\otimes n}+|\chi\rangle\langle \chi|^{\otimes n}\tag{2}$$ but will fail, because we would need something like $s^2 e^{-2\gamma t}|1\rangle \langle 1|$ and not $ s^2 |1\rangle \langle 1|$ in the last bracket in (1). The second and third addend could be written as $|0\rangle\langle\chi|^{\otimes n}$ or $|\chi\rangle\langle0|^{\otimes n}$ though: $$\left[\mathcal{E}\left(|0\rangle\langle\epsilon|\right)\right]^{\otimes n}=\left(\sqrt{d}|0\rangle\langle\chi|\right)^{\otimes n}=d^{N/2}\left(|0\rangle\langle\chi|\right)^{\otimes n}$$ with $|\chi\rangle=\frac{1}{\sqrt{d}}\left(\cos(\epsilon)|0\rangle+\sin(\epsilon)e^{-\gamma t} |1\rangle\right)$ and $d=\cos(\epsilon)^2+\sin(\epsilon)^2\cdot e^{-2\gamma t}$.
In any case, the question is:
Question: Would you consider $||\left[\mathcal{E}(|0\rangle\langle \epsilon|)\right]^{\otimes n}||_1$ to calculate the decoherence rate? As seen in (1), there are also off-diagonals (whether its regarding the basis $|0\rangle,|1\rangle$ or something else) resulting from $(|\epsilon\rangle\langle\epsilon|)^{\otimes n}$, that should be considered too, no? If not, how would one interpret the result?