On another web search I found a much more plausible origin of this phrase. When carving meat you can get near to the knuckle or bone and be unable to cut any deeper, so this could mean a remark that is near the knuckle is close to the limit (of good taste). It said that 'near the bone' has the same meaning. It just sounded more logical to be the origin. I did wonder if it had some origin in Boxing as in 'below the belt' which can also refer to a remark that is sneaky, cheating or unkind in some way likely to cause offense.