It's not quite that simple, re: OS is better/400%. A given core can only do one thing at once. The OS schedules by time slicing between threads assigned to that core to rapidly context-switch what's running when--100% doesn't mean the core is "full" so much as all of its possible slices are allocated. That's the OS level.
But within any given timeslice you can get tiny periods of idle core due to the process stalling on resource access (memory bus, etc) which would normally be wasted time. HT allows the OS to say "do this or that" by scheduling two processes per physical core. That lets the core internally switch between the two choices based on which can proceed. The OS wouldn't otherwise be able to know that or do much about it within a single timeslice.
It's the recovery of those bits that result in the speedup and you'll potentially see it on any physical core with two or more threads or processes assigned as long as they're spread between the two logical cores.
You're right re: snappy, both in that it's a bs word and in that UI is usually bottlenecked on stuff other than cpu so won't generally see speedup itself. But if you hit a button, then stuff happens, then the UI changes, stuff happening faster means it'll potentially change quicker even if that delay is otherwise small. That can make a UI seem more responsive.
Even with HT a core can just do one thing at once, it's just a much more efficient way of context switching. Unless you have a bug in the VM/Runtime, a core at 100% is doing all the work it can do (as long as you're looking at the right values and not things like waiting for I/O, like memory, disk, network).
And now we're talking about things that are measured in ns or faster, the human perception of instant is around 10ms, tens of thousands of times slower...
When you press that button, if you're crunching data HT can help (if it's a parallelized work load that actually sees the benefit of HT), if you're moving some text around in the window, scrolling a webpage etc, it won't.
I just don't think confusing people with their computer feeling snappier with a i7 is correct, nobody will ever be able to tell the difference browsing the web on an i5 vs an i7.