Uhura used the phrase "alternate reality", but yeah, you got it. I consider it be a brilliant conpromise; the higher ups wanted a reboot, but the filmmakers wanted to respect canon, so they came up with a fork-in-the-road scenario. The most amusing part is that the forking idea isn't even new in the Star Trek franchise.
As soon I had discovered that he was attacking Earth, I knew he would fail. The only real intrigue for me was how such a ridiculously overpowered ship would be defeated. At least they avoided the generic omgitexplodedinabigballoffire!