What do you think? How much knowledge of the rules should players have, both going in (creating a character, etc) as well as during actual play? Why? What aspects of players' knoweldge and awareness of the rules and play system impacts your opinion on this?
I think you already know that there is no single answer, because the range of variety in RPG ruleset and playstyles is enormous.
I am currently the DM in a long-term 5e D&D campaign, and the player in a Call of Cthulhu campaign.
In the D&D campaign, we tend to play quite tactically when it comes to combat encounters, so our players should better remember the combat rules well, in order to choose how and when to use their special abilities and spells. On the other hand, we avoided codifying strictly the rules for visibility, hiding, searching, perception and similar, as I think the more precise you want them to be for "consistency", the more you stumble upon situations where your precise rules won't fit, and the game feels even less consistent as a result. In general, the players rely on me to sort out any highly variable or environment-dependent situation.
In the Call of Cthulhu campaign, us players don't even know the rules. The campaign is not tactical at all, combat is rare and often dealt with by only one or two characters in a short time. The DM obviously uses the rules for action resolution, but the players are playing the game mostly narratively, investigating locations and interviewing characters, then making in-character decisions without thinking too much beyond choosing actions simply "because I know my character is good at that".
I am currently pondering over DMing a Ravenloft campaign, and doing it more similar to the Call of Cthulhu one.