Though this is not exactly the San Jose based kind of ComputerLiteracy, I would think it has to do with the TechnoPhobia (as its antonym) that one can encounter when trying to educate one's own parents on using new technology. Like, say, wireless phones.
Ever puzzled about what makes it so hard to understand TechnologyNewerThanTheTimeWhenOneWasFifteen? (I think this is a concept of Douglas Coupland. "Shampoo Planet", maybe? Correct me if I'm wrong.)

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Being computer literate is being a ComputerUser. Being application literate is being a SoftwareUser.