Earlier quoted context omitted.
Plenty of users buy phones without knowing what Android is or even what an "operating system" is. All thee know is compared to their old phone with a random proprietary OS, this phone has a much more polished interface and apps similar to their friends iPhone. I'm sure most of the people that read HN care about the details you listed, but I wouldn't assume your average mall-shopper that walks into a cell phone store…
I disagree with your top statement. Every user knows what an operating system is -- they've been educated on that fact for decades. And any user of a "smartphone" knows they're really getting a little computer. The iPhone probably has the broadest market of non-technical users and even they periodically get OS upgrades -- you think their users don't know what that is? The problem with this conversation is lumping tog…
Almost no users, including people buying smartphones, have any idea what a phone operating system is. Most users, including people buying smartphones, struggle to tell you what their computer operating system is.
Phones, including smartphones, are not sold like computers. Lots of people buy smartphones because they have the best cameras, or because they're the 'top end' phone, or because 'they want a blackberry' and can't tell a Nokia E61 from a BlackBerry device.
Also, at least in the UK, there's a lot of smartphones - including Android devices - being marketed at the general consumer market. There's not really any phones sold to 'technical' people - the distinction you want to make is 'consumer' versus 'business'. Windows Mobile and BlackBerry are 'business' (traditionally). The iPhone is 'consumer', albeit high-end.
Android phones tend to be consumer-focussed, competing against the iPhone. There's a few Android phones that are priced to the mid- and low-end of the market, and there's a lot of Nokia S60 smartphones in this range. (A lot more than Android or iOS, actually. Nokia are still the #1 smartphone manufacturer.) Most people buying these devices are 'non-technical' and if they understand the difference between 'Android 1.5' and 'Android 2.1', they just don't care.