Normal users seem to be very comfortable with the idea of unspecified magic though.
To try and paint computer users as being in two camps 'normal' and 'developer' does everyone a disservice - there's much more variety in users than that. Here's an example - there's a lot of gamers that like side-editing save games, yet they're not developers. Where to they fit into your dichotomous view?
I think 'regular' users have plenty of use for understanding the filesystem. I also think that it's okay to have some degree of expectation for the user - dumbing it down for the lowest common denominator is harmful (look at politics!). What do you really gain by alienating the power users?
I see no reason why making the common case simple (not "dumb") means you have to eliminate, or even alienate, the power users. Frankly, since I started using a Mac, iTunes and an iPhone, I stopped managing music files. And I think that's great. Files are an implementation detail. What I want is music or radio programs, not files.