Earlier quoted context omitted.
Anecdotally, it seems computer literacy is actually dropping over time. I taught an entry-level scripting course aimed at medical graduate students for several years, and each year the number of students who did not comprehend even the concept of files and folders was higher than the previous year.
That's entirely our industry's fault. After all, there are no files anymore, just cloud documents on remote websites.
However, flat structures are harder to use, and people tend to use Google Docs less than the shared network folders when Word existed.