I agree it's not as clear cut as a ban on firearms or explosives, but it seems like a sensible restriction to me, worth enforcing as best we can.
The rationale in this sub-thread was to leave the current security in place "to weed out the idiots, mentally unstable, etc", and those people will be stopped by passengers after the mindset of what the goal of an airplane is changed on 9/11 (it used to be "they want to redirect the flight to Cuba" now it's "they want to redirect the flight into a building").
It's really very easy to stop this type of thing.
Of course they can do a lot of damage. But they don't have to be on a plane for that. They can do a lot of damage on the street. The big question is: can they take control of the plane and use it as a weapon?
Nowadays, passengers know that hijacking means likely death. That knife won't stop everybody.