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I think there is a need for it. I'm new to Xoops, but not to web sites or HTML, forums, photo galleries, and all that nifty web stuff. So it was all fairly simple once I got adjusted to Xoopsing. And now that I am bitten by the XOOPS bug, I am totally hooked.
I am building a family site, where the users (mostly my extended family, most of whom are scattered everywhere and barely PC literate) will not know how to post in a forum, post a link in Web Links, upload a photo for xcGallery, send an e-card from xcGallery, or any of the other stuff that seems relatively simple for people who have been around the web, or PC's, for a while.
I think a good FAQ for using the core modules would be wonderful, and add-on FAQ's for popular modules would be good, too. As it is now, I am faced with writing the FAQ's myself, so as not to have answer the questions all the time.
In short, I think there really is a need for this.