The SAKs and Boy Scout knives are probably sheeple friendly, but give up function, namely a locking blade and one-hand opening. I want a locking blade for safety and one-hand opening for convenience.
I'm far from an arts/design person, but it seems to me that there are 'styling cues' that could be used to help. The Kershaw with Rainbow ti-ni coating posted by 'blendingnoise' (@1) is a great example. The knife has all the features of a 'tactical,' but it flatly doesn't intimidate due to the color.
Another idea I wish some maker or company would try is to look at the accessories for mountain-biking, snowboarding etc at an outdoor retailer like REI. What if similar 'styling cues' were incorporated into a knife? Another example is Stanley tools, which tend to have a certain look.
Finally, I think there must be ways to make a knife look smaller than it really is. I have two knives that are almost exactly the same size, but one looks much bigger, I think because of its large shiny 'bolsters.' When the knife was delivered I had to measure it, because it seemed so much bigger than what I had anticipated.
For those who think it is stupid, just look at the recent thread in which a poster from Germany said that locking folders had been outlawed, and so he needed recommendations on good slip-joint folders.
http://www.bladeforums.com/forums/showthread.php?p=5507076 Or the Blade magazine articles about people convicted in (Eliot Spitzer's) NY state for carrying liner locks that were mistakenly classed as 'gravity knives.'
As astute poster Todd A. points out:
"Should what that sharpened piece of steel looks like matter? No,but it does."