All of Apple's Hardware releases, every single one of them, have had minimum System version numbers.
In many cases, new versions of the OS were released specifically for the new hardware release.
The principle is that each new hardware revision requires specific support in the OS. If the current version of the OS doesn't have that support then clearly those features aren't going to work. Therefore you need the new release.
How could Apple predict in Mac OS X Server 10.1 the features that would be needed by the next rev. hardware?
What's confusing me most of all, though, is that if you have a DDR PowerMac, surely you have the 10.2 software you need to run it?