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It's more than just head knowledge, although that certainly is important, it's about kid knowledge. What do I mean by "kid knowledge"? In the general sense, it's about knowing how kids think or don't think. What turns them off (and not doing it), and what turns them on (and then doing it).. are just a few things that make our teachers cool.
In the specific sense, it's about knowing how each kid ticks. It's sort of intuitive knowledge. Somehow, a little bell goes off in their brain that says, "Oh, I remember.. this student likes this song. Or he'll think playing this is a treat.." It's the gobs of little stuff that makes for the big stuff. That's what makes 'em great.