I marched in the Geneseo Knights from '85-'87 then went on to the Cavaliers. I think a big part of the Knights demise was a lack support in Geneseo, which had, and probably still does, a very strong musical program in its high school. There were only a hand full of us actually from Geneseo that marched and we couldn't recruit anyone from the high school level. Also, the Knights didn't have the best repution in Geneseo. Any one who's been there knows that it's a very small town and these "unruly" Knights folks were trouble in the eyes of the town. I also think the Knights staff also made critical mistakes in the eyes of DCI in the early-mid '80's that didn't help their cause too much either.
When I marched in the Cavaliers, the Knights became known as "the Cavalier feeder corps" due to the fact that a lot of us that marched in the Knights ultimately ended up in Rosemont. I think a lot of us left out of frustration. Several others ended up going to Phantom, Garfield and SCV during that same time.
Sometime, listen to the '85 Knight rendition of Jesus Christ Superstar. That show is one of the all time best drum corps productions. And we did it with 35 horns!! Great show, it still gives me goosebumps listening to that one...