To me, a computer is a tool. And, tools need some learning and experience to be good at using them.
I really think too many people have computers that don't really want or need them. My parents don't care about computing. They want to be able to access a few websites, email, and do some simple photo editing. And that is pretty much it. An appliance for them would probably be a good thing. I'll probably steer them in that direction on their next upgrade. Things like netbooks, iPads, and the like are getting popular for a reason. They're easy to use appliances. Appliances certainly have a place in computing, and it's a rather large one.
But, for what I like doing, I still want a general-use tool. I like tinkering and making things. I want to be able to load whatever I want, not just an approved sub-set of applications. I want the freedom to make the system do whatever the heck I want it to. And I understand that to really acheive that, it's going to have to be a more complex system, so I'm good with having a computer that takes a while to learn.
So, in short, I think there's plenty of room for computers as tools, as well as computers as appliances. It doesn't need to be an either/or thing.