Literacy, like many educational precepts, has come to be seen in an increasingly complex light thanks to the internet. Where literacy was once simply defined as the ability to read and write, we now have new types of literacy that are not entirely related to langauge.
The visual coding of information through Windows and the internet has given rise to theories of "visual literacy" and "media literacy" which refer to a person's ability to understand and navigate information presented and represented in ways that are not entirely language-based.
These theories of new literacies suggest, to me, that one of the potential impacts of the internet is the creation of new modes of reading and writing. As a society we may be growing less capable of writing well-formed and grammatically correct sentences (perhaps), yet growing more capable of navigating increasingly robust information and entertainment systems (the internet and internet-equipped devices like tablet computers and cell-phones).
The point is this. You don't have to be literate in a traditional way to use an iPad. You do, however, need to have some sort of ability to "read" the information and interface with the machine. One kind of literacy is required.