No, Paul does means "digital natives". A digital native is a person who was born during or after the general introduction of digital technologies and through interacting with digital technology from an early age, has a greater understanding of its concepts. (From Wikipedia)
I see, first time I came accross this term... which means I'm from the dino age...! Very interesting question. As one from the dino age looking at the digital age, I saw it coming; the integration of computing, media and tele-communication. They have one common; fact information and knowledge transfering and processing. I suspect 'digital natives' would be versatile in informaiton and knowledge seeking and therefore more knowledgeable. More information/knowledge available stimulates the brain (in a collective sense) would increase intelligence in general. In turn, it increases effectiveness and efficiency as well as value creation.
In short, the digital age increases the usage of information and knowledge, therefore, KM is indispensable.
In terms of skills, a few comes to mind.... information search, information linking or indexing or 'meta-information' (like a relational database), manipulattion of digital material (music, photos, video, presentation...), programming, designing (software, hardware, process and system), virtual collaboration....
By making the intuitive understanding of 'digital natives' explicit, we will then know what those born in the dinosaur age need to be taught ("Don't press that red button with a dot on it!") to become fully digital literate. This will be useful research.