An aside, but I feel pretty old, because I remember 30 years ago quite well, and no, I don't think people (at least people in tech) would be that surprised by the miniaturization and technological advancement that has occurred. Moore's law had already been churning along for decades in 1995, laptop computers had been out for a while, people (including lots of university students) were browsing the web, and heck, there were even PDAs that could do handwriting recognition in 95.

People were already saying "Isn't it amazing that this computer that you can carry around in your hand is more powerful than a giant room of computers that NASA built to send astronauts into space" in the mid 90s, so while people wouldn't necessarily guess the details, I think they fully expected the technological advancements to continue apace.