I might understand French moderately well, but I would hesitate to claim knowledge of FrenchI understand what you're getting at, mav...

But I don't think you'd claim "knowledge" of French. You may claim knowledge of the French
language, but even then, that wouldn't necessarily mean you
understood French - it may just mean you've read lots of books on French grammar.
It seems to me there's something more
dry about knowledge when set next to understanding. And language is more of an ocean than a desert, as I'm sure you'd agree.
However, I agree with you on the debasement of the word 'understand'. Not that that's the only word to have been thoroughly debased in the wonderful world of business!