Some random thoughts and anecdotes about game knowledge...
1) Flipper skills and game knowledge have been continuously see-sawing for me over the last few years. There have been long periods of time where to practice for an upcoming event, it made more sense for me to study game rules...and other times it made more sense for me to just play and work on skills. If one got too far ahead, it was more beneficial to work on helping the other catch up.
2) There are 3 people locally who I expect to know just about everything regarding game rules on any game I'm about to play on location. Two are in the top 100, and the other is in the 2000s. The guy in the 2000s plays around 50 tournaments a year.
3) Of all the times I've heard someone lament their lack of game knowledge, I'd guess that 80-90% are cases where they're comparing themselves to players significantly more skilled than them in all/most other aspects.
4) *Some* game knowledge is very important. But even on modern Sterns, two or three sentences is all a good player needs. I was there when the current #45 in the world played his first three games of Iron Maiden. We talked about rules as he played, and his scores were 150m, 500m, 1b. On his second game, with no prior rules knowledge, he broke the Grand Champ....and then doubled that on his third game. In about 900 total plays on the machine, the next highest score across all players is around 600m.
5) I was playing Tron while thinking about this thread last night. I do somewhere around 1-4 ball control moves per controlled shot. Regardless of my rules knowledge, it takes me several moves/decisions just to get the ball to a place where I feel I can put that knowledge to good use.
Rules knowledge isn't #1...but it's the best scapegoat.
Assuming a modern machine, I'd say:
1) Accuracy (if you never miss, your game will last nearly forever)
2) Ball/Flipper Control
3) Most impactful 5% of the rules
4) Nudging
5) Mental Game
6) The other 95% of the rules