Thanks so much for asking this question so clearly. I never understood the "knit" part either until someone pointed out that the new row of picked up stitches IS a knit row. "Pick up and knit" is a single action, not two, in my head now. Considering all the harder things I am willing to try, this just stumped me for the longest time!
Boy, I wish I could think of something creative to say now that you are reading this.