Fair points, iwire. I guess I'm considering the most likely scenario of a hot fault in a metal outlet box that has no ground to trip the breaker and instead energizes the box and the metal face plate. Or an appliance short that energizes the metal appliance housing because someone used a 3 to 2 prong adapter to fit in the outlet.Consider this.
In most wood framed homes bringing the EGC into say the living room provides the other conductor needed to electrocute the occupant.
Very few people, even less home occupants will receive a line to line or line to neutral shock and an EGC will not prevent either of those types of shocks.
Most home occupants that get a shock will be shocked line to ground and if there is no ground to contact that possibility is illuminated.
Now of course, go into a room with metal plumbing and things change a bit.
I not really anti-EGC but I think it is wise to look at things from all perspectives and not just assume an EGC makes a room safer.
As far as K&T, they do not run side by side like a cable so even if you they are bare they will not short and are unlikely to cause a fire due to the ceramic knobs and tubes. Can we say that about how we run NM?
Overheat NM and it will either short or being directly against wood start a fire.
Again, I am not anti-NM just looking at things from all sides instead of assuming new is always better.
Or the most likely scenario with K&T, namely that it's highly unlikely that it's been unmodified over the decades and that there's a loose connection or mistake just waiting to expose itself when something brushes against it the wrong way.
Keep in mind, this is all just my opinion, which is probably heavily biased due to the fact that I live in a 125-year old home.