I agree with you that the kit is sorely lacking.
I don't have a serious issue with the knife selection though. I think people worry way too much about having the perfect piece of gear when a barely adequate one is maybe appropriate. It is not like you are going to be using this a lot. It is for all intents and purposes a one time use kit.
The knife can be used for cutting, skinning, trapping, wood-cutting, and other important things.
That the author thinks one will be skinning, trapping, and wood cutting with a $1 pocket knife even further suggests he is clueless.
that the author thinks salt and sugar packets are important enough to put in a so called survival pack shows how poorly thought out it is.
to me the most critical item in any survival kit is a $2 poncho. it will keep you from freezing to death from the cold and wind. it is not perfect rain gear but it may well keep you from dying. hypothermia will get you long before you can trap and skin anything.
_________________________
Warning - I am not an expert on anything having to do with this forum, but that won't stop me from saying what I think.

Bob