However I believe that those who grew up with or experienced the 8 bit home computer and it's evolution to what we have now, they have a much better understanding of how computers work.
Those of us grew up in the 'before times' had to understand how computers worked just to make them, well work. Much like someone who had to dig their own well, run their own pipes and heat their own water probably has a much better understanding as to how and why hot water comes out of their shower.
Part of why I don't think people understand the digital world is because it's changing fast. Both the systems themselves on a lower levels like hardware, and on top in regards to UX. Typing into a Commodore 64 is vastly different than a mouse-driven traditional desktop, which again is very different than a material design smartphone app. It's a lot of work to know these systems, and so, I think people don't know them that well, and that they overestimate their, and others' familiarity with them, in a similar way to how the Dunning-Kruger effect works.
It's not really a good or bad thing, just a difference. I think you'd usually find most younger people are quicker at acquiring information than average old people due to their familiarity with the tools, though not necessarily any better at turning that information into anything actionable. Most young people are just as useless outside their comfort zone as old people are.