The good news is that in a whole lot of ways knives have improved. The average quality of the steel, mostly stainless steel now, and other materials is much better than it has ever been. The designs are as solid and functional as they ever have been. Prices are down and the level of utility delivered per dollar is up. Functional and effective knives are available for $10. For $60 or less you can get one that is as good as any in common use by our ancestors.

The down side is that as job specialization and assembly line industrialism have been applied ever more intensively fewer and fewer workers are employed making knives. Most employees know only their individual task. Fewer have any understanding of manufacturing a knife as a functional object. Expert knife smiths, ones that know it from the structure of iron up, are few and far between. And getting scarcer every year.

Ironically as the number of experts decreases the average quality goes up and prices go down. I don't think we are in danger of not knowing how to make knives. The device is pretty easy to understand and a minimally functional knife is quite easy to make. You don't need a great understanding or mastery of knife making to make a tool to skin a squirrel with. Hard pressed and without better options you could work with aluminum torn from a beer can or a piece of glass from a broken bottle. Our very distant relatives did it with less.

It is entirely possible to kill and prepare a chicken with bare hands alone. I have done it. It wasn't as clean and neat as using a knife but it can be done without any specialized talent or skill. IMHO it is good to do it once. Just to know you can. It makes a good demonstration. But not one for young children.