It seems the "nobody cares about backwards compatibility" statement was a little unfounded after Peter Moore confirmed his words were taken out of context.
The problem with the compatability is well documented and they actually for awhile were not going to include it but the "ninjas" that MS had (that was their names a team of people who tested it to see if it was possible) said it could happen but they would have to do as they are and tailor each piece of software to the Emmulation software, so it is a slow painstaking process but most of us still have our Xboxes laying around (especially those with well modded systems) and they did the best they could to include some of the more played games in the initial batch of compatability and I am sure they will get to a very nice percentage of games we can BC and play. Over time this will be less and less important though as the 360 titles become more prevelant and we switch to full new-gen gaming.
Of course, this room is empty. I'm sure everyone who read his comment thought something completly different. That's a relief.