I'm not one to get offended easily, so that aspect of your post isn't an issue for me. However you don't seem to have a real foundation for your belief, just an assumption. I can believe that the average Japanese person doesn't know every single kanji, just like the average english-speaking person doesn't know every word in the dictionary, but I think it's a big stretch to assume that Japanese people can't even read books on the train because their literacy is so low.