My definition involves understanding how computers work to a decent degree outside of basic app usage.

Being mechanically efficient at using computers (and by this, I mean being efficient at using carefully- designed apps) does not count in my eyes. If any problem occurs, or if one has to do anything outside of the basic app flow, then people go blank.

I operate a car daily, does that make me car literate? I understand mechanically how to operate a car, but if anything out of the ordinary occurs I have no idea what to do. Except to call someone who is actually car literate to fix the problem. Usage does not correlate with literacy.

When a problem occurs, I've seen many people not even read the error messages or display basic critical thinking ability. I can't call this tech literacy.

> They can talk with their friends over the internet, create and layout documents, print posters, do research

This is a testament to programmers and UX designers making easy to use applications, not people being "tech literate".