Looks like they haven't completely backed down
Reading the linked blog entry, they say they will support Kaby Lake and future CPUs on Windows 10 ONLY. So if you (or a big enterprise) buys a PC next year it will NOT be supported on Windows 7.
I expect the Reg to run another article next year when Microsoft climbs down on this. Enterprise customers are not going to rush to deploy Windows 10 just so they can buy Kaby Lake PCs, nor are they going to tell Dell and HP "we want previous generation CPUs". They will buy Kaby Lake PCs, and tell Microsoft "you WILL support this, or we WILL start seriously looking at how many PCs we could switch to Linux, and/or expanding the number of Macs we have"