i'm a university student and i knit in class all the time.
it's easy to take notes - when there's something to write, i stop what my right hand is doing, pick up pen, write a bit, then go back to my knitting. i find there's a lot of time where the teacher is just talking and it's not necessary to write down every word. compared to others in class, i write a LOT of what the teacher says. i haven't found knitting has interfered at all with my notetaking.
i find that knitting in class keeps me more interested because i don't zone out from boredom. keeping my hands busy allows my mind to stay on topic. this is especially important during my 3hour night classes.
plus, i feel like i've accomplished something at the end of the night.