I don't think it's right to say that most people don't understand ISO, aperture, exposure values and so on. By that I mean that they don't even know that there's anything to understand or not, because they use compacts or phones to take pics, almost always on a full auto setting. So how would Apple's solution help them? Pictures, to them, are already a case of point and press the button. I suspect iCloud will come into it somehow....
Even high-end SLRs are starting to include this type of simplification - like Canon, for example, whose creative options use terms like "background blur" in their menus, rather than just saying "increase aperture".
Now the Lytro camera has some other disruptive technology, which makes sense as a game changer.
This is an utterly brilliant idea. Nothing annoys me more than camera snobs who utterly adore all their techno-waffle. I’m a computer scientist by profession and looking for a camera at the minute. I’ve pretty much narrowed it down to the Panasonic TZ30 point and shoot. But, the thought of actually using it and having a tonne of buttons I don’t care about on the device… it’d be nice if someone could just make a decent camera that takes decent pictures in a timely fashion and doesn’t look hideous. And, most importantly, deliver a massive slap to self-righteous camera freaks who consider their pictures ‘art’. Irritating.
Well, the great thing about all those buttons is that you can just ignore them if you don't need them.
I use an SLR because it makes better images than would a P&S in the same situation, and because I'm a holdover from the film era who finds it very difficult to compose without a viewfinder. So bear in mind that plenty users aren't freaks or snobs (and I certainly don't consider my pics to be art!

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You might want to look at Fuji or Olympus's offerings, particularly the range of interchangeable-lens cameras below their SLR offerings.