The punkest thing I ever knit was not punk because of what it was -- it was punk because of how I knit it. I was making the Eve capelet from Knitty and showed a friend how huge the needles were. We got to talking about how people with piercings can use knitting needles to taper to a larger gauge. I realized that my earlobes, at 5/8", were big enough to accomodate the needles ... so I stuck one through and did a few rows with the needle hanging through my lobe.
If it's not punk to knit through a hole in your head, I don't know what is. :-)