Knock sensor wire insulation q

[doubt at inwave.com (Nate Mellom)]

I replaced the breather hose (from the block to the intake) on my 16v 
this afternoon, the elbow coming out of the block was completely 
deteriorated (see http://tinyurl.com/hbatn, this was last year, it had 
since almost fell apart).  I noticed that the insulation on the wire 
running to the knock sensor is falling off (in the pictures, you can see 
some splitting and cracking, now there are chunks missing).  It's 
ziptied to the new hose, and no part of the wire is contacting any metal 
bits in the engine bay.  It's so oil-soaked I can't get tape to stick, 
and I'm not sure of a better way to cover it (small guage wire wrap, I 
suppose).  The wire itself is okay, not broken or split.
I'm sure it's not dangerous (AFAIK it's just a signal, no power), but 
should I take steps to replace it soon?  Run with it as-is?  Should I be 
THAT concerned about it?

Any one a spare knock sensor I can pick up in Cincy?

Thanks,
Nate