Homeassistant as DMX gateway to KNX

Hi :wave:!

Yes! Don’t create knx entities for non-knx lights.
Use either knx_event or interface device trigger to react on telegrams.
Use expose to send state updates to knx.

Also have a look here KNX - relative dimming for lights
And here Advanced control of any light entity from KNX (state, brightness, dim, temperature, color + states feedback)
And here GitHub - envy/knxsync: Home Assistant custom component to easily sync HA entities to KNX