You make the same mistake as the previous person. You take the exemple of the minority of people who cared to try to understand how computer worked and generalize it to the entire gen.
I have thousands of people in my office that prove everyday that millenial are for the most part tech illiterate and do not care about how thing works. I've seen the millenial arrive in the work env and the gen-z and there is absolutely no difference. Millenial were exactly as dumb (or as smart). If anything, I think gen-z are actually smarter because they come in not believing the corporate bullshit the X and the Y drank like cool-aid. But that's another topic.
In any case, all the stuff we had to go through didn't make us smarter, for every 10,000 of people of my gen who learned they had to edit autoexec.bat to launch a game, I'd bet that barely one knew what the heck himem.sys actually was. That didn't make them smarter, just monkeys who learned a trick.
So yeah, geeky gen-Z don't need to tweak as many parameters, they can directly launch fusion 360 and start designing parts for their 3D printers. Tech has moved on. Gen-Z geeks fiddle with other stuff than shitty windows drivers.
Oh don't get me started on modern "CS" curriculum of some schools, it's atrocious. I see them start learning about react and nodejs in year 1 because "that's what companies need" but that leaves them with massive fundamental knowledge gaps. I've seen people 5 years in their degree who struggled with Boolean logic.
I believe they should start at the bottom of the stack and climb up instead of starting somewhere at the top and being left oblivious about the massive amount of stuff going on below. And the "internship" system we have in my country is massive BS. Basically instead of learning they spend 1/2 of their education time doing menial job in companies. Which means their 5 years degrees is barely 2.5 of actual school time but we still like to pretend it's equivalent to a normal masters degree.
The "need of the industry" for "IT people" has lead to the proliferation of diploma mill curriculum that churn out monkeys lightly trained on the proverbial typewriter and calls them "software engineers".
But we still have excellent schools that produce very well trained people, and I do not believe they produce less of them, it's just that we also produce a lot more that went through bad curriculums.