If people spent half an hour thinking, dusting off their old PC, and hooking up cables, they'd be GODS of their media.
People, on the whole, haven't a clue how this stuff works. They're lucky if they can hook up color-coded cables for 3 boxes. Of those who can follow basic installation directions, they still don't see how the magic works, they're just satisfied that it does.
Absent from your obscenity-filled screed about how they're clueless vs. how easy it is, is the generous real-life insertion of "X doesn't work ... oh, that's easy, just do Y ..." Sure, the big pieces are pretty simple, but there's always some glue logic that must be cobbled together to make it all work - and THAT is the hard part for most people.
Anecdote: streaming "The Bachelorette" to the TV for my wife was easy. It's easy, right? Anyone can do it. Probably the easiest thing to do. Just go to the website (requiring clicking around until you find the "full episode" buried amid all the other tangential videos), plug in a $20 MiniDVI-to-Composite adapter on the MacBook (after going to the Apple store to buy one, and knowing which to buy), click 'play' on the notebook which is now sitting on the floor 10' from the couch (the wireless mouse is upstairs 'cuz that's where she usually uses the thing), click 'fullscreen', spend 10 minutes watching and wondering why something seems missing, realize (she didn't) that the allegedly fullscreen window is in fact much larger than the TV resolution so we've watched 1/4 the show with only 1/2 the image, discover after some experimentation of resizing/replugging multiple windows & cables that you have to plug in the adapter THEN open a new window THEN go to the website THEN play and fullscreen the video (wrong order = fractional image), and finally get a dirty look from the wife who wonders why we have to dork around with all this "but it's FREE!" technical bullsqueeze when we could just pay $60/month and watch whatever she wants with a simple remote control. "Oh, but now you've worked it all out, right?" you say. NOT. Next day she wants to see the next episode (like RIGHT NOW), and I have to explain how to do all that over the phone because we had to unplug the computer and attach the VCR because the little girl REALLY wanted to watch "Kipper" again, then explain again why it's stupid to pay $60/month for Cable when we could be, as you put it, "GODS of our media" for free.
Access the FULL internet? most people haven't a clue what's out there to access, much less know how.
Multitask? if it's not visible RIGHT NOW most people think it isn't running.
Share files? you explain media files, much less sharing them, to my mother-in-law.
Copy discs? better be as simple as "insert disc 1, insert disc 2, hit 'Copy'." Oh, right, it isn't.
Strip ads? most people don't care - or even view them as "public service announcements". ("How else will I know what's going on?")
Normalize volume? "normalize"? by this point you'd better know where this is going.
Bypass waste-of-time interfaces? Here's a way they like: for $XX/month, they can plug in a dedicated box with 6 buttons and access whatever they want - rather than hours of dorking around with confusing tech stuff for "free".
And that's why even Google is faltering at the task: Google TV is the culmination of what you describe, out-of-the-box pre-assembled stuff, and it's still to complicated for most people.
Apple seems the only one to get it right: $99 one-time cost, plug in two obvious cables, easy menu system to access huge (yes, limited, but EASY and there's enough to keep most people happy) array of options, and pay a mere $1 per episode for zero-hassle no-commercial on-demand viewing.
Sure, you and I know it's easy & free to do all this stuff. That's because we're NERDS - which most people aren't, so it's cost-effective for them to pay.