I was reading and was just going to say...this sounds like "Men are from Mars, Women are from Venus"....LOL
Here's an idea too...pranksters are always hard to deal with because once they get your reaction....they know they got you! How about non-reaction as a way of dealing with it? I find people who "joke" like that are looking for reaction and when you give it, you fuel them to continue.
If he picks up your needle and uses it, let him have it...instead...go to your supply and get the same size needle and continue knitting....and create a box of needles for him...in full view...somewhere for him to find...and always by your knitting stuff....and in fact, put on it..."MY HUSBAND'S KNITTING NEEDLES". And make sure when you go and pick up your replacement needle that you say nothing...and when he asks if you need your needle back, say "no, that's yours now, you can put it in your box".
That gives you the excuse to buy lots of needles...because for every one he uses you don't use again...just keep piling them up. And if he says you have lots of needles, tell him, no, those are yours now...you used them....LOL
I always love the reverse psychology approach when dealing with pranksters.....LOL