If you think that is the only reason the Knights are good you are misinformed. Plus, they have never been officially caught such as Windsor and Portland.
The Knights were turned around before the allegations of paying players even existed. The Hunter's turned around that franchise. That happened partially due to the increase in revenue's due to the JLC opening, but they did the groundwork. That 2004 super-team was good drafting, a change of culture and smart moves.
Even now, when CHL teams aren't going to risk paying anyone due to on-going litigation, they have created a culture in which top prospects want to go to them. Antonio Stranges turned down the USNTDP to play for the Knights. Jack Hughes would had done the same if he slipped to them.
Guys like Dvorak didn't show up there because they were paid. I also don't think it made a lick of difference for someone like Matthew Tkachuk.