>I still do not understand what problem upstart or systemd are trying to solve

Linux systems are still too much like unix. There are still some simple components that do a single, simple task, and can be easily debugged. This is clearly not acceptable, and does not fit with the rest of a modern linux distro. It needs to do more things, be less reliable, and be harder to figure out when something has gone wrong. Systemd and upstart both solve these problems nicely.