... aaaannd this is why things have to get simpler and simpler and more user friendly. It is definitely too soon to start running tv ads, etc.
This is true - you need a diploma in Bitcoinology to understand what's going on. Not exactly that bad but it's not going to work for your average Ma & Pa type user. It isn't that hard but it involves things that are unfamiliar to most users expecting it to be like an ATM machine.
I think they would be better to keep a single address by default in Bitcoin, and have it as an advanced option to assign new addresses each receipt transaction. Anyone who read up on and cares about anonymity could enable that mode easily but it wouldn't confuse users starting out.