It depends on the situation. If there is some sniper lying down I will always walk RIGHT up to him to his side, crouch down and fire a bullet near his face. Usually he just looks over, they never react like they are getting hit hard and run. So then when he looks at me, I give him a second...And Paddle him (Or knife if im not med)
But if I am on a pistol/knife server (I don't care if someone says its for paddlers, its an entirely different ball game, and is WAY fun) with 28+ people, I can get 4 knife kills rushing them before I can get two kills with the paddles. There have been times where I have had a team mate dead in an enemy crowd. I then rush through the crowd stabbing at anyone near by while jumping and running left/right while I hear pistol shot all around me. I then jog over my guy and revive him with out stopping, then run the hell out of there. I've made it out alive about 75% of the time and it always raises a laugh out of me! (Although I can't say the same for the guy I revived, but I did my damndest!)
If it is a squad member, I usually tell him I'm coming, and he gets ready to jump up. We then, as a last resort in a midst of the enemy, run, jump and stab as many of them as we can togeather.
I never noticed the paddles getting better range? I have to say I have 'missed' a guy with my knife...Even when the guy was prone, and I clearly stabbing him. (You know you hear the stabbling, you see the dust, or as i like to call it, silver pixle blood)
Nature is a powerful force. Those who seek to subdue nature, never do so permanently.