kids past the peak of technosavvy?

The first year students on our digital/humanities/computing (better name still wanted) course are 17-ish. Over the 15+ years its run we've seen immense changes in their computer literacy, and the last part of original first 3 weeks, 12 contact hours, was abandoned 6 or 7 years ago since they didn't need to be taught how to make files and folders, what a disk was, how to do footnotes in Word. They got more and more adept until 4 years ago we saw the majority of the class had done some HTML (not using Dreamweaver-type editors, but typing in tags) Now quite suddenly we realise most haven't any more.
Why?
Have the things - the toys - they play with got more sophisticated, do they drag and drop shapes and colours instead of typing html into bits of MySpace? We thought we'd be out of a job as the trend continued, but the opposite is happening - they are getting less able to manipulate computers beyond what's provided in the common applications, and correspondingly less able to envisage doing anything beyond that.
We don't teach them to be programmers, but to be able to see where computers can take them and their work, enough to see when they need to hire programmers, to be able to run projects, and to lead from the technological and academic front.
So we will continue to turn out the next generation of scholars and 'knowledge workers' who can do more, imagine more, dream more, and achieve more than the ones who haven't taken our programme.
Phew.