'Passing on "knowledge"' in a religious setting means indoctrinating children from a very young age, very literally since they become sentient beings. You say something to the effect of "here is a set of things that are true: I'm daddy, she's mommy, the sky is blue, and Jesus is god." You present your faith as a dogmatic view that will become entrenched and an integral part of his/her identity. As something that is above questioning. I find this deeply wrong from an ethical point of view, but also very harmful from a practical point of view, as you're teaching them some very twisted things (obey without question or you will be punished; accept things from figures of authority without evidence; etc.).
That is a wild mischaracterization of religion. If you read sources like Thomas Aquinas or Catherine of Siena or Thomas More or Cardinal Newman (I can go on), you are not exposed to this kind of childish religious experience you are criticizing. All these people questioned and did not accept authority without evidence.
I fail to see how telling your children what you believe is any different from your indoctrination. For example, you say 'I am mommy', 'I am daddy', as if that's not equally societally constructed. Now, I personally believe such things are from a transcendent creator. However, ignoring that, it is unclear why you think those statements are any more 'true' than mine. Not all societies have this, so I'm not sure where you get the idea that this is also not a form of cultural indoctrination.
Now, of course an easy retort is that such things, while perhaps constructed, are still true, since a child is obviously brought up in a certain culture. However, most parents lessons to children go well beyond 'I am mommy'. Most parents give their children an entire worldview, which contains certain beliefs, etc, that cannot be justified on their own.
One will then claim that well perhaps that is true, but the goal is to teach questioning. And while that is perhaps true, I do not see in my own generation and younger, a generation of questioners, so I'm unconvinced that such things are automatic the moment one gives up religion. But I'm convinceable, so please..
I can't think of anything worse for society.
Isn't that a false dichotomy?
That is an incredibly false dichotomy, and one at odds with the existence of many fine Catholics (my religion, and the only one I can really speak on) who questioned / refused to bow down to bad authority.
I feel a more nuanced approach to religion would do everyone justice.