Hey Jarrod,
In my county where I live probably 70% or more of the guy's walking around have a folding knife on them. So the chance of a knife encounter is possible and also a knife on knife encounter. I will concur with you that
a duel where both
know a knife is going to be involved is probably almost non existent in this day in age. Most attackers and that would include knife wielding attackers want an advantage. They do not want their prey having a tool to equalize the situation.
Running is always the number one option. However, that option may be unavailable if you are with your wife, girlfriend, kid's, etc. Now imagine this you are in a bar fight or any physical encounter and it goes to the ground and the other guy deploys a knife. Maybe you have a knife that you can deploy or not. Another scenario to think about is you are at home asleep and someone breaks into your house and you hear a noise and you pick up a tool ie.
possibly a knife. (for me it will be ching ching pow) You walk around a corner and walla there is someone standing there with a knife in his hand and game is on. The potential for violence and possibility of a tool or tools entering into the equation is very high. Particularly when you think that we as human beings want in general to survive and most people will seek an advantage. ie. a tool.
The tool training that we utilize in IRT can be used whether I have a tool in my hand or not. The same movement applies either way. Just with different consequences.
Now here is a fun drill for you during your next BJJ class get some folding knife trainers and have each of your guy's have one in their waist band or belt. Then allow them to roll and if they want to pull out a knife. You might be blown away with what will happen.
Oh and to put something on the line a little the loser buy's the other guy a GI. That should get the adrenaline going as BJJ GI's cost a fortune. ( I should know I have a bunch )