I never knew that mrsmopp but at the time did think TB not being at William and Kate's wedding, despite other former PM's being invited was intended deliberately vindictive.
Yes IMO she was being unreasonable if that was her reason for not awarding him a knighthood. If not for Blair's intervention and strongly 'advising' the Queen to leave Balmoral and return to London, had she left it any longer she may well have received a hostile reception from the public, in conjunction with the one she was already receiving at the hands of the media.
Diana's funeral may not have been what she and other members of the royal family wanted, but it certainly seemed to be what the public in general wanted.
She miss read the mood of the public and underestimated Diana's popularity and if up to the time of Blair it had been usual for a PM to receive a knighthood after their term in office, the Queen's refusal to do was personal. Instead of resenting the part he played in the days following Diana's death, she should have thanked him.