Knight damage output sucks, and that's reasonable even if it's stupid that a 1000 ATK stat on your char sheet actually means "well, 1000 for a paladin, lol".  Embrace the whiff!  If it bugs you that much pretend you're a marketeer and call it a feature (you take less riposte damage generating the same melee threat!) 
 
We (including SKs in the "we" here) get the same agro per swing as every other melee that gets primary hand damage bonus (suck it bards!).  Although we don't get the superior agro of dual wield with top shelf weapons (2h agro is mildly gimped), our 1handers have outrageous ratios and we get discretionary agro producing abilities (spells) that make warriors green with envy and allow us to hold the mob by the nose and laugh about it even without generating any melee threat at all (i.e. if you weren't actually drunk that time you plowed enrage when they let you tank in Sky just admit that you suck and reroll as a rogue.). 
 
Just remember that holding agro (your primary job as a group tank) doesn't depend on you actually hitting the mob.  A great group can do a little bit more with the extra damage output of a warrior tank, but that takes 5 excellent players and warrior who isn't a mouth-breather.  On the other hand, an ok group can do great things for a few hours with a first-rate knight tank and that only requires one excellent player (you).  A good warrior allows a group to reach its potential, a good knight can lift a group above and beyond that. 
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