Yeah, the article is really exaggerated. Firstly, this is no "whiz kid." I mean, she's 1. She gets that tapping and pinching does stuff on an iPad, but clearly has no idea what. It's not like she was playing Angry Birds.
She is also used to those actions. Chances are, her dad gives her an iPad instead of physical printed material most of the time. Of course she tries to perform the same actions on it. She's a baby. She's not going to sit there and evaluate whether paper is physically capable of responding to touch.
But she gets how to flip the pages. She sees how to work a magazine.
Still, it'll be really interesting to see how this gen grows up. Most of the older folks consider my gen "digital natives," and I guess we are - I could type on a keyboard before I could handwrite legibly, and I remember my dad patching Doom for me to make all the monsters Barnie when I was a toddler. I've been on computers since I was a wee child.
But not like this. You couldn't carry around computers when I was a toddler. I still grew up with physical books (although my digital nativeness shines through - I never liked physical books as much as I like my ereader, and I'm sure the ereader's conformity to my otherwise digital life is the reason why). The internet was still mostly the domain of uber-geeks, not normal people.
I'm a digital native, but her generation are internet natives. That's a whole 'nother ball game, and strange to even imagine.