It depends.... is ignorance == incompetence??

I'm not sure the term 'incompetent' is quite right. I think we're talking about behavioural attributes rather than skill/knowledge based attributes aren't we?
Competence implies (to me) task oriented skill and knowledge rather than a behavioural/potential thing.

Maybe the 'average' person is not a statistician. Whereas many above average people (eg who have done further education) will in fact have had training in statistics...

It seems to me that the above average people who misuse the terms are more incompetent than those ignorant of the terms?

In fact Dr Funder's criticism may be better aimed at the researchers for assuming competence in the use of statistical language by an average person?