Yeah but in motors running big cams and heavy springs with solid lifters they pick up too much. Knock sensor is useful, and is a good thing to have but they will get intrusive on occasion. Turning one down will reduce the amount retard and allow the engine to run on the edge of detonation. All it is is an electrical safety nanny, not required for an engine to run properly.
yes, I'm well aware of what a knock sensor is and how it functions. It is an extremely useful safety device, sure it's not required to run an engine properly, but to recommend turning it off to someone who is building an engine for a towing vehicle is crazy. there is a time and place for desensitizing it, but that time and place is VERY rare, and it really isn't for daily drivers, street performance, and ESPECIALLY towing. if you're getting knock to the point that you can hear and feel it, then its way too late, and the damage is done. the knock sensor will typically detect the knock and prevent it before it becomes an issue. the need to run RIGHT at the point of knock is not necessary except for in racing where fractions of a ft/lb will count. in fact most of the time when tuning the spark maps for a DD, the spark is advanced JUST to the point that KR is detected, then backed off a few degrees for safety, then the knock sensor is left on to detect issues that may arrise from a non-controlled environment, like running lower quality fuel, fluctuating IAT temps, fluctuating ECT temps, etc, etc...I'd much rather have the knock sensor there as a failsafe than eliminate it just to squeeze a couple extra hp out.
as far as false KR, it is not as much of an issue with the more modern PCMs, with the primitive blackbox it was more of an issue, that is why they had things like the LT4 knock module which was very slightly desensitized. PCMs like the 411 are much more sophistcated and able to filter out most of the false KR noise, but chronic KR really its not as common as you'd think. the knock sensor picks up only specific frequencies, so just having general 'loudness' from a big cam will not set it off, false knock usually stems from the use of things like the noisy timing gears (vs chains), and other things which may fall into the very narrow and specific frequency that the knock sensor will actually pick up.
if the OP was building a dragster, then yeah, there may be use of desensitizing the knock sensor, but not for the situation he is describing.