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That is the average fee across all transactions.

Transaction fees are per kb of data so more complex transactions pay more. The amount transfered is irrelevant.

I'm sorry if I appear a bit dense, but this is the part of bitcoin I least understand. On an individual level, when transferring person to person, are the transactions ever more complex than just remove funds from here and add it to another wallet?

You might have multiple inputs or outputs for an ordinary payment. There are several other types, see https://developer.bitcoin.org/devguide/transactions.html#sta...

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