I don't think the issue is whether they understand or are aware, but do they even care. We live in a world where "good enough" is good enough and it goes beyond audio. As much as we want to believe that quality should drive purchasing decisions, when it comes time to pay up, it sits pretty far behind other things like price, fashion/trend, acceptance by your social circle, etc.You can sit someone down and show them what a tube based high efficient system can do for under $1500, but they'll still turn around, walk into Best Buy and buy a set of Bose because it cool and their friends think so too. And to them, it's good enough.
Here's an example. Look through your photo albums for photos you have out. Most of them are probably shot with a point-n-shoot and I can probably point out at least a dozen optically related distortion that's evident in each photo. But you don't care, because to you, they're good enough. Guess what, they're good enough for me too because my albums are also filled with imperfect point-n-shoot snapshots.
gar.