It was an oversimplification, but still valid. With public/private keys you know something that no one else knows (your private key). But instead of needing a shared secret, you are sharing your public information. The big difference (IMO) in public/private crypto and traditional shared secret crypto is the decoupling of encryption and decryption.

I'm sure I'll be corrected if I'm wrong, but my understanding is that public key cryptography is very processor intensive. Because of this, instead of using your private key to sign every bit of communication, you use the public/private key crypto to negotiate a shared secret for a different algorithm, such as AES.

So it still comes down to having a shared secret. Public/private keys just change the way that secret is shared.

Going back to the issue at hand, the question is where did you get the original public key from. This has always been the "problem" in public key systems. You have to trust the public key that you get in the first place.