No need to apologize. Asking about the things you don't understand is a good way to learn. This is the Newbie forum after all.
Thank you for taking the time to provide in-depth answers. Although I'm not entirely new to Bitcoin, this thread has helped clarify some things and solidify my understanding. Your helpfulness is sincerely appreciated, as is your attitude regarding this being the Newbie forum.
By contrast...
But to store your privkeys in a wallet instead of knowing them is the height of foolishness.
If you don't know what a private key is, please don't use bitcoin.
Wow, what elitist crap. The height of foolishness? Don't use Bitcoin if you don't understand the technical underpinnings? And these comments are directed to people who are most likely new to Bitcoin! We
all start life completely ignorant, and leave it almost as ignorant as we started. We learn some things along the paths of our lives but there is much more that we will never learn than what we do manage to learn. Everybody (other than the original architect(s)) had to learn about Bitcoin at some point. Treating new people as if their ignorance is "foolish" -- and disqualifies them from using Bitcoin! -- will do
nothing to increase the adoption or correct (secure) use of Bitcoin.