Actually the KS circuitry advances the ignition until it hears knock then starts a progressive back off in steps until the knock stops. It knows that it is harder to stop knock once it starts than to never allow it to begin in the first place. So it remembers the advance that seems to work...........but periodically tries to add advance as long as rpm are constant [highway cruise]. I believe the knock flag is tested evry 2-5 seconds depending on rpm.
Under low load cruise conditions the higher the advance the more fuel efficient the engine is!
Turning on/off ac set a knock flag so the cycle can be adjusted to optimize situation.
In theory the KS system can run different advance for different banks [why 2 sensors] but unless there are significant differences [bad injector/plug] both banks should be equal BUT there is always a WORST cylinder that starts to knock before the others.
KS SYSTEM is there to squeeze the last MPG out of situation.
Remember the KS system stops being looked at when rpms exceed 4500 rpm, so it is not really for WOT where advance is looked up in the PROM [it can still work partially but not as well as at 2000-3000 rpm.
The following explains how the KS IC decides and creates a signal to ecu:
http://www.intersil.com/data/an/an9770. ... ic8101.pdf
Don't confuse cruise and sudden tipin knock with WOT knock!