Yes, it means layperson, but with derogatory cense. It is like using the n-word to describe black people (though not as extreme). If you mean average user, just say average user, unless you really mean to use derogatory term, that is.

Depends what and how you do it. VPN gives some level of anonymity. TOR even more so. These give you probably greater anonymity than anything else you have in offline live.

Privacy and anonymity are not the same thing.