I have never had a car lose all sense of power from bad knock sensors. It depends on the car/ecu, but the car should still have some power even if they are telling the ecu all sorts of bad things are happening.
Below is a dyno graph of my old turbo maxima (VE30DE, T04E 60 trim) running 8.5 psi. My knock sensor was straight up gone and the ECU pulled timing until it started to ignore it at a certain RPM. I'm sure you can tell what RPM that was. Anyways, it made spool awful until 3,500rpms, only putting down 125 wtq where it should be putting down 175wtq-ish if not more.
