I don't know anything about archery, but this strikes me as a weird metaphor - is the amount of wood that goes into an arrow really what makes it hit the target?
It's about aerodynamics: if most of the wood is sticking out sideways, the arrow won't fly very well. However, if it all is behind the tip, then it'll at least have a chance to fly. Then again, extending the metaphor, you'll have one really long arrow, and that won't fly very well either.
It's not the best metaphor but it is a relatively well known and understood saying for many native English speakers (at least in North America).
I think some people who have replied to you are trying way too hard to make the metaphor fit. Top item later today will be about a Hacker Newsian with feathers, arrowheads, and a sharp edged rock, being arrested by Google's security while muttering about trajectories and wind resistance and trying to catch Googlers in the cafeteria.
I'd guess it's a mass thing. The more mass you have in the shaft of your arrow, the more momentum it has- ergo, the further it flies and the harder it strikes the target.
Yeah, if you read the article heading instead of just these misleading comments, it says "More wood behind fewer arrows". So it makes sense. It's about focus. More resources behind few projects.
Yes... but one could just as easily say "more metal, fewer cars", which would likely just lead to hauling less people at a lower fuel efficiency. ;P What I think people (including me) are looking for is an explanation of where that idiom comes from.