This. My mom, who has watched me become obsessed with the weather over the years, still doesn't know the difference between the two... no matter how many times I try to explain it to her. Also, the radio station I listen to during my commutes always mix up watch and warning when there is one for us. The last tornado watch we had, the radio host kept saying "and we have a tornado warning until 8pm". I wanted to call in and correct her, but didn't.
As for those who don't take warnings seriously - a coworker from St Louis called me yesterday to tell me about her evening on Wednesday, how warning after warning was issued for the area and she said she eventually got tired going to the basement. She said she just sat in her living room and watched the news, heard about the baseball size hail falling in downtown St. Louis and laughed to herself about I would be upset that she wasn't taking the warnings seriously enough. I didn't get upset, but did voice my concern over how she really shouldn't do that because one of those times where she decides not to go to the basement is the time the tornado will actually be there.