"iOS 7 Optimized" is Apple's way of saying "built with the iOS 7 SDK".
Apps that are built for iOS 7 get the new shiny keyboard and some different behaviour when run on iOS 7, but can still run fine on older versions of iOS if the app developer is willing to support older versions of iOS. This is done by setting an option called "deployment target" to an older iOS version when building in Xcode (and testing a ton on older versions of iOS, and not calling newer APIs on versions of iOS that don't support them).
So this announcement means Apple is dropping support for older versions of Xcode (with older iOS SDKs), but older versions of iOS are still technically supported as long as you're building with the iOS 7 SDK.
Does this mean that, essentially, we only build for iOS 7 onwards?