
The word most often applied to Knopfler's playing is "tasteful" and this is what people mean by it. This comes from the blues of course, but every lick in the song is singable IMO, and while it's not exactly tame, it's not shredding for the sake of shredding. He doesn't sing over the guitar much, and when he does the guitar is roughly following the vocal line.
I HEAR THEM ALL CHORDS HOW TO

The verse uses the Andelusian cadence (Dm C Bb A), which is the most common chord progression in the world I believe.

They're extremely useful in multiple genres for fills. the end of the second line of the first verse or the first line of the second verse. Sixths country/soul riffs are all over the place.One of the bars took me a very very long time to get (it's a few bars before the famous part in the final solo, easily the hardest bar in the whole song) because I didn't pay close enough attention to the fingering.
I HEAR THEM ALL CHORDS FULL
Pay attention to what's most efficient while you're learning the licks, it gets really important when you start getting up to full speed. There are multiple patterns used throughout the song, including alternating TITM, TIM (banjo rolls, essentially), frailing and strumming with an invisible pick (just index braced by the thumb), plucked chords (all three fingers at the same time), and a few TMI licks.
