On the issue of knifes beeing so deadly, let me tell you that defending yourself against a knife while beeing unarmed and unready is possible. Against a gun it is not.
I propably owe my life to German gun control policies which insured that a bunch of muggers that attacked me only had knifes and not guns. Since even with no gun laws, I would not bring a gun to a party (for a lot of reasons, people get drunk on parties, drunk + gun = Bad. Apart from that, guns are expensive and may be lost in the same way as a moblie phone or a wallet), I would have been unarmed anyway.
The same approach would not work in the US because there are to many guns around already, if you would try to implement an all out ban like in the UK you would get the same problems, propably in an even worse way.
May I ask precisly what you feel to be unable to do with a Rifle/Assault Rilfe and what you could do with a handgun?
For Home defense, I would definitly take an assault rifle, more power, can be used in close combat, and in that situation I could not care less if I shoot through some walls (which can be avoided by cleverly choosing your weapon and your ammunition). For defending myself against a tyrannical gouverment I would use improvised Explosive devices anyway, since the gouverment would propably know wether and which gun I have and could trace it to me quite easily. Even if they could not do that, engaging conventional military forces in a shootout is not conductive to your average life expectancy.
But if they come for me an Assault rifle would be way nicer than a handgun again.
The only thing that is difficult is concealed carry. But ask yourself, will beeing unable to carry arms in a concealed way hurt you more or will it hurt the criminals more?
Concerning the way of actually removing handguns, I would favor a simple ban of selling them. This approach would prevent ugly "Shes a Witch! I mean she has a Gun!" Witchhunts. It would also be easier to implement. Apart from that I figure that conficating guns, which are after all expensive property, would not be very constitutional.
Since the majority of the criminals are propably not deeply trained in how to keep a gun operational, it may after some years even lead to a scenarios were legtimate gun owners have handguns and criminals not so much.