This basically says that a PRG produces a "scatter" of points on the image set that approximates the uniform distribution. More precisely, if we consider a set E$E$ in the image set of the PRG, then the measure of the set of points that the PRG maps into E$E$ is very close to the measure of E$E$.
(Since we are essentially always dealing with finite sets and uniform distributions, then we are saying that the fraction of the domain that is mapped into E$E$ is very close to the fraction of the image that is represented by E$E$. In technicalese, "the pushforward of the uniform measure on the domain via the PRG is uniform".)
So, let's suppose we have a PRG F: DF -> I$F: DF \rightarrow I$.
Define a new function G: DG -> I$G: DG \rightarrow I$, st. G(2n)=F(n)$G(2n)=F(n)$ and G(2n+1) = F(n)$G(2n+1) = F(n)$.
- g(k) = F([|k/2|])$ g(k) = F([|k/2|])$, where [|x|]$[|x|]$ is the greatest integer <= x$<= x$.
- |DG| = 2|DF|$|DG| = 2|DF|$, where |S|$|S|$ is the number of points in the set S$S$.
For a set E$E$ on the image space, the number of points that map into it via G$G$ is just 2x$2x$ the number of points that map into it by F$F$. On the other hand, the domain of G$G$ is twice as big as the domain of F$F$. So the measure of the preimages via F$F$ and G$G$ are the same. So, if F$F$ approximates the uniform distribution on I$I$, then so does G$G$. Therefore, if F$F$ is a PRG, then so is G$G$.
The reason we would want the next bit test in our definition is clear. The whole point is that the CSPRG should give us a (one time) semantically secure stream cypher. If the first few bits could give us some information about the next bit that the PRG generates, then this would give us some information to distinguish the PRG output from uniformly random. So, given messages m1, m2$m_1, m_2$ and a ciphertext c$c$, we could distinguish which of m1 (+) c$m_1 \oplus c$ or m2 (+) c$m_2 \oplus c$ is more likely to be the output of the PRG. That would allow us to break semantic security.
I think the restriction on state compromise, may be just an extension of this. If we generate a key by concatenating shorter keys: F(n)||F(n+1)||F(n+2)||...$F(n)||F(n+1)||F(n+2)|| \ldots$, we don't want exposure of one part of the key, F(k)$F(k)$, to give us information about previous or later parts of the key, eg F(k-1)$F(k-1)$ or F(k+1)$F(k+1)$.
At first glance it appears to me that if F$F$ satisfies the next bit test, then so will G$G$. On the other hand, If some of G's$G$'s state is revealed (eg, G(k) != G(k+1))$G(k) != G(k+1))$, then we can predict a part of it's past (G(k-1) = G(k)$G(k-1) = G(k)$) and future (G(k+1) = G(k+2)$G(k+1) = G(k+2)$).