> Is Wayland network transparent / does it support remote rendering?
> No, that is outside the scope of Wayland. To support remote rendering you need to define a rendering API, which is something I've been very careful to avoid doing. The reason Wayland is so simple and feasible at all is that I'm sidestepping this big task and pushing it to the clients. It's an interesting challenge, a very big task and it's hard to get right, but essentially orthogonal to what Wayland tries to achieve.
Note that the next two paragraphs do discuss how network transparency could be built, by clients, on top of Wayland.
So it depends on how you define "does wayland break X-forwarding":
If defined as Wayland, the new server, yes. Because network transparency is not built in to Wayland the new server.
If defined as Wayland, the ecosystem, well, there appear to be ways to do it by adding it back in.