I think this case (real_skill = 0, perceived_skill = 0) is maybe a trivial case, and that the bit of truth DK-idea catches is when someone with very little skill considers how much work it would be to get to whatever a 'fully skilled' version would be, they woefully underestimate.
Picture someone in their first summer of mountain biking watching youtube videos of the best guys. Yes, you know you can't jump like they do, or turn as skillfully, but you're getting better each month. However, you still grossly underestimate how hard it is to get to that skill level.
At least it's my personal experience as a thoroughly unskilled!
I'm sorry, but I have to comment on a word in this line: I feel that increasingly, "notoriety" is used when "notability" might be better.
A thief is notorious. A statistical effect is notable, imho.
But I agree with your basic point: I can't skate, much less figure skate. And I am pretty accurately aware of that fact despite my lack of skill.
Thinking about all the "INAL" answers and the obviously wrong "legal" advice and opinion on legal topics you can come across on HN on a daily basis, I think law is good example of people overestimating their knowledge.
Replace figure skating with any other sports, so, and try having discussions about, e.g, a defeat of any soccer team. All of a sudden everyone just became a soccer coach. And everyone is able to critique individual player's performance and skill and technique. If anything, this proofs the DK effect rather well.
It’s been argued before that this is the only reason that DK gained any notoriety; because it feels right, not because it is right. It’s the “just-world” theory: we want to believe that confident people are overcompensating.
Is it actually intuitive though? Consider your own example. Most people who don’t know piano or figure skating are well aware that they don’t know, and do not rate themselves highly at all. Would it be surprising to learn that people who don’t know any law or engineering don’t often hold any doubts about their lack of skill, and by and large are not deluded nor erroneously believe they’re great at these things they don’t know?
The DK paper didn’t measure knowledge-based skills like piano, figure skating, or law. It measured things like the ability to get a joke, and conversational grammar. How would you rate your own ability to get a joke? (Does this question really even make a lot of sense?)
It’s important that the methods in the DK paper focused on tasks that are hard to self-evaluate, because when people have tried to replicate DK with more well defined knowledge-based activities, they have often demonstrated the complete opposite effect, that there is widespread impostor syndrome, and skilled people underestimate themselves.