Just me, but if I had a knife with a very short handle such that the paracord served as an extension of the grip, I would not want to regard that piece of paracord as a consumable. I might wrap the firecord around it somehow, but I wouldn't want to compromise the knife's utility when there are so many other ways to carry fire starting material. YMMV.
True enough, and you make a very good point. But this is a case of having your paracord cake and eating/burning it too. The red flammable strand within the pcord can be extracted, leaving the cordage intact to fulfill its original function. I would probably prefer to use a fire cord equipped zipper pull and not mess with the knife. On the other hand, perhaps all I would have in some scenarios might be just the knife and I would have no other options. This really works with my lMF knives with a self-contained ferro rod which is an integral part of the grip. They now have fire cord lanyards. Therefore I have everything with that knife to have a decent chance at building a fire in some far out scenario where I don't have my Bic, storm proof matches, and all the rest of my stuff....Far fetched scenario but not impossible.
Bottom line is that adding a capability - fire tinder - to something like pcord with no increase in weight, bulk, and no impediment of its primary function - looks like a good deal to me.