As I recall AD&D monks had the whole quivering palm thing too.

Generally it's a framework for building your own special moves. I never had an issue understanding it, but I also have a job turning arcane and convoluted rule sets into rational computer instructions and readable database entries. I generally find that worked examples help the most, ones with explanations of each decision as you go step by step through it.

Backgrounds

Spoiler the rehash of the stuff I wrote back in character creation.
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Step Five: Backgrounds. Start with stuff, status, allies, etc. You get 7 points and can't go above three in any one background during this step. These are actually important because they have real effects outside of combat (sometimes in combat too). Most people will be tempted to go with artifacts (magic items), wealth($$$), inheritance(extra stuff). But we've been learning that beyond putting a couple points in wealth the other stuff, allies, contacts, backing, status, followers, etc., is actually very relevant outside of combat. My players are sort of flailing around for how to do stuff because they are essentially rich, social pariah, mercenaries. It turns out that if you pretty much go with the default setting that there are social networks and knowing a guy who knows a guy is really quite useful. That said, holdings can get you a major spaceship or super-tank.

It's also important to note that the players need to actually READ the backgrounds and think about them. One of my players just wrote down "Contacts:1". It came up every so often and I'd ask "Who is your contact?". I finally decided, based on some of the other backgrounds, that there's a sort of 3d graph of these things with the axis being availability, power, and response on a five point scale. Total the axis to rating*5, nothing can be less than 1. So his generic "contact" is availability 3 (widespread but not ubiquitous) + power 1 (general info, no specifics) + response 1 (you can look things up and maybe ask questions that might be answered sometime this year). Which works out to something like a subscription to an exclusive news/encyclopedia organization or a secret Wikipedia for particular kinds of information. He has access in any civilized place with a public or semi-public computerized information network, but it provides information about people, events, and stuff, there's no asking a specific question and getting a reliable answer any time soon. This is a framework that I wouldn't use if he'd written anything down, it pretty much amounts to roll 1d10 once in a while and if it's 5+ you get a little bonus info bit. Essentially, if the player picks something like allies or backing, they need to actually say something about them or the DM just makes them up as it suits them. Which could turn out to be near useless for the character if circumstances change.

Intro paragraphs say that the backgrounds tie a character to the world, represent social networks, and at least some thought ought be given to what your background represent. Also, while you can only buy backgrounds during character generation you can get them during the game. Either by making it a point to do stuff to earn the backgrounds or book 2 has a class path where the class completion bonus is another point in one of certain backgrounds. This will generally apply more to stuff like allies and fame than artifacts and inheritance. Those are (usually) just loot.

Allies: close friends, trusted companions, usually exalted, could be a daemon that owes you a debit, intelligent animals, rogue AIs, etc. Never a nameless, faceless mook type NPC. They're people with their own lives. They'll help, but not usually risk their lives, and often want something in return. Really needy/greedy characters can lose allies. Each dot generally represents an ally roughly equal to a starting level exalted character, or you can get a stronger ally for more dots. If someone wants to take a dot or two in this for a couple exalt friends who mostly stay aboard your spelljammer and have high arcana skills, maybe some healing spells, and mostly they just play navigator and doctor with only rare appearances for fights... Sure. Maybe a semi-psycho who is willing to occasionally provide technical and fire support when boarding enemy ships. I'm cool with that. But you get them convicted of piracy from your botched attempt and dragged along to Carceri with you where they nearly die a couple times? They'll say that you owe them. I'd also be cool with taking one of the monsters/opponents from the bestiary chapter at, probably, ally rating equal to their level for the actually dangerous ones. Probably one less for the no-so-tough NPCs. So... ally 5 for a young dragon, 4 for an aboleth, 3 for an arch-heretic (approximately a L2 or L3 chosen no-class), but only 2 for a mind flayer (L3 monster but not actually real tough or amazing on it's own), or even ally 1 for a lesser incarnate daemon if you've got a good reason (L2 monster but surprisingly not that nasty).

Artifacts: Magic items. There's a whole chapter on them that starts with some discussion about how you may or may not want to deal with them in your game. Generally they have a certain level of plot immunity, like character defining stuff that you buy with points in supers games. If you're just rich and buy cars, planes, and boats the DM is free, encouraged even, to blow them up with reckless abandon. You buy the Batmobile with character points and the DM doesn't get to just 'nope' 20% of your character abilities forever. Any how, this background can be purchased multiple times, once per artifact, but only to a total of five points (it makes a difference because in character generation you can only get up to three points in a background without spending xp at 100xp per point). Essentially one point will get you an artifact knife, fire starter, or tracking dart. Five points gets you an artifact man portable laz cannon or power armor.

Backing: You're a high muckety-muck in some organization. Military, religious, governmental, mafia, an organization. Comes with duties and/or responsibilities, but also support in a variety of ways. Backing 1 is a minor functionary or officer of some sort. Backing 5 is one of the leaders, a general or admiral, a Sigil faction Factol, a major sector governor for an empire (or heir to the throne I guess?). You need to talk with the player/DM about this, some things don't mesh well with random murder-hobo play styles.

Contacts: Similar to allies but they absolutely won't put their lives on the line and they won't do anything for free. Each dot is a major contact that you know personally, high ranking military officers, influential faction members, rock stars. Those dots also represent a sort of overall "know someone who knows someone" type of things, you can roll contacts + charisma or fellowship or whatever is relevant for information and minor help.

Fame: What it says on the tin. One dot is a select subculture (bagpipe polka death metal! or perhaps that's too select), five is fame that reaches across multiple crystal spheres. You should probably decide just what you're famous for, lest you risk being famous for being famous and having a number of rude jokes made about you.

Followers: Your loyal minions. Ok, loyal as long as they're reasonably well paid and housed. A good dental plan helps too. They're mere mortals who need backing, wealth, or holdings (or a combination of) equal to the number of dots in followers. One dot is about 5 people, your little entourage. Five is an army 10,000 strong.

Holdings: Real property or a spelljammer. Home sweet home. Requires upkeep so you need followers, backing, or wealth equal to it in order to keep your holding in good working order. One dot is the smallest of spelljammers, a modest home, or a local business. Five is a kilometer+ long battleship, an enormous palace, or a multi-world megacorp.

Inheritance: Your loot. This is just starting with a thing or things. They're regular things that the DM can explode and not feel bad about. Each dot is one item of a particular rarity, or two of the next lower rarity. One dot is one uncommon item, two common items, or four ubiquitous items. Five is any non-artifact, two mythic rare items, four very rare items, one mythic and two very rare, etc., etc. Nice DMs will offer or allow a replacement item(s) if they intentionally explode, melt, disintegrate, or otherwise nuke your really nice bling into oblivion. Pro tip: Cyberwear & bionic implants are hard to lose.

Mentor: Patron, teacher, defender, friend. Expects some level of obedience but is generally stronger than you are. One dot is someone just a bit more advanced than you are, a sort of big brother/big sister sort of thing. Five dots and you're Merlin's apprentice, or perhaps Palpatine's apprentice.

Status: A slightly odd one perhaps. This is having a reputation among exalts. It's specific to exalts and doesn't include much of anything beyond name recognition and respect. Although respect is a nice thing to have. One dot and exalts you haven't personally met may (or may not) have heard something about you. Five dots makes you a widely respected luminary. Whatever that means. Maybe it's like being Mr. Feynman at a physics convention.

Wealth: Continuing income actually, or perhaps you just always happen to have some cash in your pocket and a credit card with no limit. You should detail it or the DM might decide what it is and you could accidentally blow up that factory you're a part owner of. One dot is 'middle class', so buy a new car every ten years or so? Can always pay for plumbing repairs? Five dots is... a lot. Four and you're a merchant prince, bandit king, or media mogul type character. Basically you use this stat to buy stuff with. Stuff has a rarity (common = 5, very rare = 25) and you roll against that. If the DC is more than five times your wealth you can drain your wealth. Then you roll 1d10 + (1 per 5 over your wealth x5 limit) - (1 per every 5 you beat the DC by) and check a chart. Most of the time your next check is just at a lower wealth rating, so go buy something cheap (but to too cheap or the DM may get annoyed, play the game don't game the play). On a 10 you permanently lose a wealth, on 11+ you lose two.

And that's backgrounds.