Will it ever happen? When the current generation of children reaches office-holding age, a majority of them may understand internet culture, but I don't think a significant fraction will ever understand the internet in a technical sense.
My niece dropped a programming adjacent class in college because they required them to use real computers "like with keyboards for old people" and she didn't want to learn how to do that.
They're also really good at optimizing for likes on insta, I would argue that is not technical literacy either.
I don't think its a 'kids these days' statement at all. More a 'technology these days'