For me and my interactions with my students I believe that digital literacy means that the technology does not interfere with the learning. I have long been involved in patient care simulations with my students with a variety of high fidelity mannequins and other technologies. It is imperative that the student is functional with the equipment so that it does not impede them from learning the far more important aspects of patient care.
I have witnessed many situations where the technology has interfered with the learning. It may have been the student or the faculty. Sometimes it is the lack of resources to ensure the technology is working as it should. Working in a profession that is focused on caring for people means that most often the technology is in a supportive role in regards to education but there are important technologies for patient care as well. For example, cardiac monitors are becoming increasingly complicated so having digital literacy to be able to utilise that technology for the betterment of the patient is imperative.
This is why I refer to functional digital literacy because you must be functional to make the best use of what the technology has to offer whether it is during your education or beyond.