I find it hard to believe that these were Turbo Buick people you were talking too. I don't know of any Turbo Buick people that are actually stupid enough to make such claims. Talk to anyone on this board and they will pretty much all say the same thing. The Scanmaster should be the very first purchase you make for your car!!!
It reads whatever knock that the sensor sends to the computer. It has no way to pick and choose.
Yes, our cars have a knock sensor and it works just fine, assuming it's hooked up and is properly torqued. And yes it does retard timing when heard. If the knock sensor has any shortcoming it's that it is prone to hear and report false knock.
If you keep following the advice of the people to whom you refer, you are in for some serious let downs.