Hi Gus,
You are spot-on.They are (were) "the bees knees"
In Sultans of Swing there are the lyrics, "But Harry does not mind, etc" .
There was a lot of reference to that frase (by my music pals), all of course because Mark Knopfler is only a few years older than I am, and I was smack bang in the middle of it, they were one of my Favorite groups!
Cheers and Happy Drumming,
Harry