Good operating systems should:
1. Allow users to obtain software from anywhere.
2. Execute all programs that were written for previous versions reliably.
3. Not insert themselves as middlemen into user/developer transactions.
Judged from this perspective, Windows is a good OS. It doesn't nail all three all the time, but it gets the closest. Linux is a bad OS.
The answers to your questions are:
(1) It isn't backwards compatible for sophisticated GUI apps. Core APIs like the widget toolkits change their API all the time (GTK 1->2->3->4, Qt also does this). It's also not forwards compatible. Compiling the same program on a new release may yield binaries that don't run on an old release. Linux library authors don't consider this a problem, Microsoft/Apple/everyone else does. This is the origin of the glibc symbol versioning errors everyone experiences sometimes.
(2) Maintaining a stable API/ABI is not fun and requires a capitalist who says "keep app X working or else I'll fire you". The capitalist Fights For The User. Linux is a socialist/collectivist project with nobody playing this role. Distros like Red Hat clone the software ecosystem into a private space that's semi-capitalist again, and do offer stable ABIs, but their releases are just ecosystem forks and the wider issue remains.
(3) It hasn't change and it's still bad.
(4) Docker: "solves" the problem on servers by shipping the entire userspace with every app, and being itself developed by a for-profit company. Only works because servers don't need any shared services from the computer beyond opening sockets and reading/writing files, so the kernel is good enough and the kernel does maintain a stable ABI. Docker obviously doesn't help the moment you move outside the server space and coordination requirements are larger.