I think it's a metaphorical thing, really. Because the simple fact is that all swords break, and Katanas break more easily than most under hard use, due to their glass-fine edges.
The statement could be said to mean "Bushido is the soul of the Samurai," with Bushido of course being "The Way of the Sword," and being used as an overarching descriptor for the Samurai's hyper-perfectionistic lifestyle.
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