Interesting thread, first off thanks to Jackal for shouting out Ry Cooder, I haven't listened to him in years but 'Pull Up Some Dust and Sit Down' is my soundtrack this Sat morning thanks to your comment and youtube
I agree with the comments of others regarding Knopfler being melody or music first and Dylan message first. In fact I think this is born out in Dylan's case by how he frequently changes the musical landscape of old songs, tour by tour, to keep them a fresh vehicle for the messages he sings, which are usually unchanged. I'm not saying either doesn't care about the other aspect, but it at least SEEMS to me that it is the case that they have different priorities.
I don't know enough about either one to know how they write but it wouldn't surprise me if Knopfler starts with melodies and riffs and adds words and Dylan did the opposite.I am really growing to like Knopflers lyrics because they are just so broad. To have someone write from the perspective of a Napoleonic soldier, a stock car driver, or a black gospel singer in the 50's American south doesn't happen every day.
How they are similar? Well for one I think it seems you need to already know all the words before you attend a show as neither seems to enunciate or sing clearly in concert.
Anyways I like that I can enjoy them both and I don't have to decide that one is good and the other bad.(maybe I'm not a real fan
)