You don't need to know anything about files and folders to install and use Steam, which represents most of PC gaming and have done so for a very long time now.
People still learn those things to manually install mods and cheats, but it represents a fairly small subset of the overall gamer crowd. And if you look at the kinds of questions people ask on Steam forums that are related to that, it's clear that many users today have no concept of file system at all.
Lot's of kids still learn a lot from playing Minecraft Java-edition! There's a lot of skill involved in learning to setup a server, install mods, and it can't be installed through Steam, etc.
So its not entirely black-and-white, but I agree that for a large portion of people they do indeed never need to care.