The reason this saves significant amounts of space (which isn't explained adequately in the article) is that the shoulders are generally the widest part of a person, and if you configure the seats so that you don't have shoulder-to-shoulder contact down the entire row, you can fit three seats into a narrower space. It doesn't matter at all if my shoulder overlaps with the legs of the person next to me, because they aren't at the same height level, so our seats can be closer together.
Backwards-facing airplane seats are also safer, but aren't standard for other reasons: http://www.airspacemag.com/need-to-know/are-aft-facing-airpl...