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...