Those are the majority of people in the world. Tech savvy people are in the minority.
She might know the difference between 20 and 25mpg, in the same way she might know the difference between 8 and 10 hours of battery life.
Would she understand how an A8X is better than an A8 which is better than an A7. Moreover, would she understand why it is $200 better.
Both your points are valid. Most people are not tech savvy. But I think I am trying to draw the line much lower than tech savviness - maybe at common sense? I don't think you need tech savvy to tell that A8 maybe better than A5. Otherwise Apple could have branded their CPU's with random numbers. Intel does it with Core i3, i5 and i7, BMW does it with their incremental series numbering and so do many other industries.