Very interesting idea. It is somewhat related to an 'immobilizer', which prevents pieces in a certain range to move at all. This weaker form would only prevent them to move beyond a certain square.
The advantage compared to a normal Knight would evaporate completely after all sliders have been traded out of the game.
What if knight is given interrupting power? What I mean is: The squares a knight can move to in a position is blocked, other long range pieces can not pass over this square. Let me give example:
In the position shown above, it is not a check, nor the queen is attacked by the rook. The rook can not move vertically, knight blocks it from doing so. It can move horizontally only, it can capture the knight but not the queen or the king. Nor is the white king under check by the black queen. And the white rook on h5 is not attacked by the black bishop on d1. The knight blocks the bishop as well.
What would Knight's value be if it was granted such a power? Why should we grant it? Knight's movement is a bit different, it shall have such extra power due to its long range impotence. It would be a Samurai then or a Sniper rather than a knight. It would be great defender, this would contribute great joy to the game. It would be an octopus rather than a horse.
UPDATE: Due to questions that arised to understand the proposal, I need to insert explanations here.
If the Knight is replaced by the samurai, then the samurai would probably be the most valuable piece on the board. It would be the best defender and when employed in attack it would paralyse the enemy camp even in endgames, it will disconnect enemy pieces from co-operating.
An endgame with 2 bishops accompanied by king vs a single samurai accompanied by a king would be great fight. Samurai would not get captured but would not win either, would not lose as well.
On one on one fight, only queen could handle him