It's kind of hilarious. It's also interesting that (in English, at least) some of the terminology like "dial" is still around and these kids use it without even realizing it refers to the dial on the actual phone.
I suppose it's like that tumblr post I saw once that pointed out that kids today probably have no idea what the save icon is,other than, well, the save icon.
And rotary phones were awesome. They still worked even if the power was out. Which is something I always end up missing every time the power goes out. Not helped by the power company which recently sent me an email that basically said "in case the power goes down due to the weather, please don't call the hotline as the lines get overloaded, just go online and check the website." I was all like "I don't think you understand what you're saying".