Goes to show how little the world really understands cryptocurrency if even the media doesn't fully understand it. It seems like they are pitting it against bitcoin because of the word digital wallet. That's like comparing dollars to the debit card that you use to spend those dollars.
You're 100% correct, most people barely grasp the concept of Bitcoin yet. They don't understand what an algorithm is, know the difference between POS and POW, and they aren't willing to part with their money to what they think may be a ponzi scheme. What they want is a reputable name they can trust, and someone who can simplify the system to make their lives easier.