The Iron took an early lead at Glanford Park through a stunning strike from Oliver Norwood, but were pegged back through Tommy Miller's goal.
The home side missed two penalties - with Ian Bennett saving from Chris Dagnall and Michael O'Connor - and were left needing a leveller from Dagnall after Jordan Rhodes had smashed in a late effort for the Terriers.
"I am delighted with the way we played, but obviously disappointed that we missed two penalties," said Knill.
"This was a game that either team could have won or lost. It was a great advert for League One football. There were lots of chances at both ends.
"I believe that we are moving in the right direction That is nine draws we haave had already this season - I have never had that many before.
"Once or twice we have let ourselves down, but in most of those games we have had a chance to win them.
"It's frustrating that we haven't but we have some good players at this club and if they can continue to show this level of commitment, I am sure results will turn for us."
Lee Clark, the Huddersfield boss, thought his side should have held on to claim a victory after taking the lead with 86 minutes on the clock.
"The players are feeling a bit dejected because after going in front so late in the game, this result feels like a defeat," he said.
"A lapse has allowed Scunthorpe in for an equaliser. But it was a terrific game between two committed teams who were a credit to their club.
"It has taken two great penalty saves by Ian Bennett to keep us on level terms - underlining the great form he has been in.
"I have told the players that they are not going to win every game, but we have just got to work harder on eradicating the little errors from our game."