Technically the shielding of a shielded wire
is a ground wire (this is what shields it), it just isn't part of the sensor circuit. If you look at the wiring diagram for any shielded sensor signal wire in the FSM, it always shows the shielding being grounded to a chassis ground point, usually near the ECU.
So in the case of this particular knock sensor:
-This is a single wire sensor. The knock sensor itself is what creates voltage; it is a piezoelectric element, which basically means it generates voltage when you shake it. The ECU does not supply power to this sensor, it only looks for voltage FROM this sensor.
-Even though it is a single wire sensor, the sub harness plug is two pins. The white wire is the sensor signal wire (pin 2). The other pin is to pass the wire shielding through the harness connector. This is because the shielding is grounded near the ECU.
-Please refer to the screenshot from a 240sx (also KA24DE, sorry...this is what I have handy on this computer. Sensor wiring is the same on the truck, but connector/pin locations will be different on the truck). The dashed line cylinder represents the signal wire shield. It grounds near the ECU but is not part of the sensor circuit. You also get a nice visual of how this shield passes through the sub harness connector as well.
The wiringspecialties replacement sub harness will work just fine. It's "upgraded" because they just use a more modern harness sheathing vs the factory brittle split loom.