Don't get bogged-down with the binary...
This binary stuff probably belongs in a later chapter, or in an appendix. Horton seems to cause a lot of confusion by throwing it into chapter 2! :(
I don't have the book, but it seems very condensed. I think it could be 3 books! (Beginning C++, Windows Programming, and Using MSVC++.)
Binary is not used that much. (I use it "every day" because I work with hardware.) If you are going to be a professional programmier, or if you're going to get a Computer Science degree, you MUST understand binary and bitwise operators. But, you can do an awful lot of programming without it! :)
One last point - Usually, when programmers work with binary, they will actually use hexadecimal in the program. You'll almost never see bitwise operators used with signed-decimal numbers. Usually, the binary number is being treated as a "bit-pattern" rather than a "number".
But, as -=SoKrA=- said, everything is binary inside the computer, so the computer doesn't care if you consider it a number, or a bit-pattern.