Earlier quoted context omitted.
Backwards compatibility refers to newer software/hardware not supporting older software/hardware. For example, Apple axed the rosetta powerpc support (which allowed you to run older software after apple switched to intel CPUs) in Leopard. I still keep a PowerBook G4 just for MacDraw.
Rosetta is optional but supported on Snow Leopard, and gets downloaded automatically on demand. Seven years of transition (assuming SL stopped to be supported when ML was released) to Intel was more than enough for active software to be ported. You just can't carry legacy code indefinitely, you have to stay focused or you'll be all over the place and suffer death by a thousand cuts.
Which they backed off from. You can probably thank Flashback for that.