Somebody mentioned this in a different thread, and it is VERY true. People are not scared of the knives, they are scared of the person with the knife or in the manner they are using it.
I can't recall too many incidents where someone took out a knife and used it right in front of me. The couple that I vaguely recall were situations where they were trying to cut open a box, and the blades were no longer than 3 inches. At the time I was what some people here would call a "sheeple", but I did not for a second thought it was a "weapon" or wondered why the heck the guy was carrying a knife on him.
But if I were to see a guy cutting his food in a restaurant with his own folder, or unnecessarily taking out a knife to do something that doesn't require one.... even now as a knife guy I'd be a little taken back. Not because I'm afraid of knives, but because I'm thinking.... "WTF is he doing??"