I think we should have been able to trade a talent point for one attribute point.
If Larian changes the trade to 1 Talent point = 3 Ability points and keeps the 3 Ability points = 1 Attribute point, then you can.
Things like Know it All would then be traded off to virtually remove the penalty, but why not.
Know-It-All should indeed get a boost of some kind given the restriction and penalty compared to Bigger and Better.
All Skilled Up would need a boost to give 3 Ability points instead of two.