Thanks for posting this!
So after reading your rules and watching the video here, I think there is no question whatsoever that the block was perfectly legal. It was a stationary back at the snap lined up within the tackle box; the block occurred no more than 5 yards down field (it was nearly at the blue line) and definitely less than 7 yards laterally from the snapper's original position. Frankly, as the rule goes, he could have clipped him (from behind) and it would have been legal meeting all these conditions.
We may disagree, as I don't even see it being dirty. A fullback cutting a linebacker just beyond the line a few steps advance of the runner? Happens all the time. If the snap had not been botched, the wing back would have been about 1-2 steps behind the blocker. The blocker just executed what he was supposed to do. Like CPR said, Miller looked and slightly modified his path noticing the bad snap and it just went wrong.
As previously mentioned, this would be 100% illegal in high school, citing safety reasons. (only linemen may block other linemen on the line below the waist in H.S., even then, only when the ball is still in the free blocking zone) Perhaps we should be mad at the rule that allows a fullback to get a running start and go low.
Edit: Bonus Points -- Yep. Knott was not only held (twice, by the same player), he may have been facemasked.
For me, it's dirty because he went straight for the knee. You can see that the primary contact is shoulder-to-knee.
I agree that the rule is bad. It's already been simplified once, but the block needs to be removed entirely, (except for linemen.)