The current generation has always had relatively limited access to the internet, and most have used it off of phones or tablets their whole lives.

Making it harder for users to install any program of their choice only adds fuel to the fire. Banning something on the internet adds oxidizer. Thanks to my stupid govenment of militant pensioners, I learned English to an extent enough for writing this comment and how to use tor.

The average person in any generation is computer illiterate.

Probably because standards of literacy change. Same happend with electricity.

Who you work as? Maybe sampling bias.

I think it is now thanks to how devices and operating systems have evolved. But growing up in the era where internet and home computers were relatively ubiquitous, but clunky and slow, meant that most Gen Y were pretty good with them IMO.