I carried a large Stanaback Special for several years, I kept the WT lanyard tucked under the keeper strap to minimize errant catching on things.

Also, when I used it, I generally tucked the paracord under fingers or one finger if I needed to improve my grip on the knife.

The points about slow-to-deploy (not trivial to loop cord around wrist if in a hurry or other hand is occupied) and no-one-handed-recovery are valid.