To be or not to be digitally literate...
There are so many layers and factors that go into the definition, that it makes it quite complex. I think it differs from digital skills because in digital skills, as Bali informs, you are working towards being proficient in that specific context...the what and how. Literacy involves more layers of understanding.
I enjoyed the Belshaw reading, but what stood out to me was the argument that "literacy always involves technology". I highly value oral knowledge, which he omitted. Just as he used the cookbook recipe as an example, the oral has a huge value and history to passing on this kind of information and making a literate, informed citizen in cuisines for YEARS. I made the following timeline to add to Belshaw's tool-knowledge timeline with Vizzlo through their free trial. 

Maha Bali. "Knowing the Difference Between Digital Skills and   Digital Literacies, and Teaching Both."
"Digital skills focus on what and how. Digital literacy focuses on why, when, who, and   for whom."
"We should not be throwing students into public domain to discuss sensitive topics       without having conversations with them on what they might face and which of these risks  they are willing to take, how they would handle it, and how they might support each      other. Then we should give them a private option if they so choose."
In regards to Wikipedia, "discussions can be fraught with power dynamics, resulting in   controversial issues appearing unbalances as more powerful authors block alternative     viewpoints."
Doug Belshaw. "The Essential Elements of Digital Literacy."
"To what extent is audience human?"
We assume literacy=cognitive, but Belshaw argues it's social. "Individual cannot be      literate in isolation." "We learn by imitation."
Definition of literacy="the particular context in which you find yourself."
"Literacy practices are not neutral when it comes to power, social identity and political ideology."
"The ability to reproduce perfectly other people work with a minimal amount of effort,   changes what it means to construct something."

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