Workingman wrote:and they are not as incompetent as some people would have us believe.

I'm glad to hear of this WM and not surprised you're involved in it. Information and communication is the greatest change in our time. It is fundamentally greater than landing on the moon or splitting the atom. It has changed the lives of people and societies more than the railways and they were a truly massive sea change in how the people moved and communicated.
That point you make above is an interesting point WM. People, professionals, who have been competent all their lives, are suddenly denigrated by the younger masses for being "PC/Internet Stupid". Well they may not know much about the modern day internet and modern day computers, but they sure aren't stupid.
Watching people use Skype to contact relatives is one of the most rewarding things. Also, as you say, typists who learned to type can create emails much more easily or print letters much more easily than struggling to write with arthritic hands.
Teaching is not an issue, but problem resolution is. You and I will move so fast around the screen, open and close windows before people have even seen what is in them and go to places they have never seen. Sadly I've noticed that people become unnerved when this has to be done. It is much easier to move them away from the machine, fix the problem and then go back to training.