means "some x and y," i.e. "some new are nice."
I think you will see without further explanation, that
-----------
| | |
| | 1 |
| | |
-----------
means "some x are y'," i.e. "some new are not-nice."
Now let us put a GREY counter into No. 5, and ask ourselves the meaning of
-----------
| | |
| 0 | |
| | |
-----------
This tells us that the x y-compartment is EMPTY, which we may express by "no x are y", or, "no new Cakes are nice". This is the second of the three Propositions at the head of this Section.
In the same way,
-----------
| | |
| | 0 |
| | |
-----------
would mean "no x are y'," or, "no new Cakes are not-nice."