I understand both sides of the argument here:
For one, pattern writers don't want knitters selling something that was really made from their work, and taking credit for it.
Second, knitters have made the item, why not get to sell it? The actual knitting is your work, so why shouldn't you be able to sell/donate/etc?
I've been in both of these situations, but to tell you the truth, I wouldn't worry too much about selling generic items, like, say, toe up socks, raglan sweaters/baby blankets, unless the designer has completely made up a new design concept or stitch pattern, because, who'll know? I've sold sweaters made from Elizabeth Zimmermann's percentage system, but just to make sure I could, I called Meg Swansen, and she said it was not only legal, but encouraged! So, don't worry about generic items, no one can tell if they're made from a pattern/percentages, etc. They're just plain items with no special concept behind them.