The two rises do different jobs, and knocking back is deliberate rather than an unfortunate side effect of shaping.
The first rise is mostly about flavour and structure. Yeast produces carbon dioxide, but also alcohols and organic acids, and the gluten network develops as the dough stretches around expanding bubbles.
Degassing then does three useful things: it redistributes the yeast into fresh sugar, evens out bubble sizes so the crumb is regular rather than a few large holes, and releases carbon dioxide that inhibits the yeast as it accumulates.
The second rise is the one that sets the final crumb, in the shape the loaf will keep. Skip it and you get a dense loaf with a coarse, uneven interior.