We're not stopping anyone from blocking Basic Auth to their tenant today. They can, and they should. Tenant admins can enable security defaults and it's done.
We're not backtracking, if anything, by increasing the number of protocols we're covering we're actually doing more in the long term. Timing is the biggest challenge, nothing more. We're lucky enough to have a lot of customers, and it's going to take them a while. We have to balance the security of the data and our customers ability to access it. It's their data after all.
ExchangeOnline - Outlook will not add support for Modern Auth for POP and IMAP. If you are using Outlook, use MAPI/HTTP. If you can't, use OWA. Or use a third party client. Thunderbird supports OAuth for POP and IMAP.