I don't understand what's wrong with this.
The handle is typically loaded so that it weighs a lot more than the blade, which means they're likely fall out of the basket if they're blade down.
Also: blade down, you can't tell which ones are the knives unless you only do knives blade down (but forks and spoons handle down), which seems even more insanity to me..!!
It's easy to cut yourself emptying the dishwasher if knives are point up, but since you're in the kitchen which can have slippery floors and there's usually an open door low to the ground and a lot of moving back and forth there's also a small risk of slipping/tripping and falling onto the knives final destination style and impaling yourself on them. Ideally pointy things point down and spoons go up.
Dishwasher utensil baskets have compartments tall and narrow enough that the knife is not going to fall out. I haven't had that happen ever in my life. Even with heavy handles. (If it's as large as a chef's knife, however, that lies down flat in the upper rack.)
And yes, you do only knives down. If you did spoons and forks down it would be too crowded at the bottom. I don't know why only knives down seems like insanity to you?
I mean, I'm glad you've never sliced your hand on a thin paring knife sticking up at an angle that makes the blade virtually invisible. But hey, it's your hand you're risking, not mine...
It seems like the comment you're replying to is likely referring to butter knives. But if your paring knives match your other flatware it seems like a pretty reasonable confusion.