If the defender stuck his knees beyond the normal stance, he's responsible for the contact. If the contact disrupts the shooter (in this case), it's a foul.
This camera angle doesn't give much of an answer about either question, though, due to the players in the way. I can't tell if his knee was out, so I'll take your word on it.
Personally, I don't like knees and elbows going out, especially on a dribble drive like this, so I'd be inclined to have a foul to stop the behavior. It looks like his shot was sufficiently affected to justify it.
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