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<M3> Back Pressure and Torque

Had the opportunity to drive an '88 M3 today that I might buy.  The exhaust 
has a very bad leak just aft of the cat/resonator unit at a joint in the heat 
shields.  Is there an exhaust junction here or is it likely rot-thru?  
Obnoxiously loud and accompanied by the rattling of the heat shields.

Anyway, the car had absolutely no low end torque.  I've read thru the digest 
that reduced back pressure means reduced torque, but I don't understand the 
relationship.  Will someone please explain?  From 3500 rpm on up to redline, 
the car pulled strong. Below 3500, it was a 320i rather than an M3.

TIA,

Bob Duckworth