Yeah I don't understand what the kerfuffle is. Sometimes they express disbelief or surprise, but it's never been a problem beyond telling them "I control the whole domain, you get a special address so I know if your database gets hacked and/or my information sold via this channel" and that almost always results in the employee being interested in getting the same thing for themselves.
Mix of CA and IL, but CA is like half rural desert and half SF bay.
I don't think it requires much computer literacy to understand what an email address is, how annoying SPAM is, and the problems of identity/credit theft.
Sure, these are first-world problems, but so is having to furnish an email address at all.