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It doesn't make knowledge skills completely useless, but it makes them way less useful and allows bypassing a lot of uses of them. And this whole 'declaring it doesn't make it true' relies on the GM altering the setting/module/whatever was the source of the OOC information to make that thing 'not true.' This is simply not something many GMs are willing to do. (I am not among them and this is exactly I know that a lot of people disagree with me on this!)
Once again, our approach does not require changing a fact just because it turns out the player thinks he/she knows it.
As long as the GM has previously established that some things have been changed, there will always be doubt. Thus, just because the players turn out to know some "secret" does not make it necessary to change it.
But, yes, if you don't DM this way and suddenly want to do so at the moment that a secret is revealed, you'll have to change the secret. But none of us are suggesting you do it this way.
So that's another strawman.