If you use your guidelines. Chris, I would say not much weaker. It would be like a truss. The top (regular wood grain) would be in compression and the bottom (regular wood grain) would be in tension. The middle (where the knot is) would just be a spacer and as long as the knot wasn’t huge it should have almost no effect. I’m thinking of the bed rail you referred to originally.
The early bird gets the worm but its the second mouse that gets the cheese.