I think K-Q is underrated in short-stacked tournaments.

It's basically a suckier version of A-K. The only unpaired hands that have you in bad shape are A-K and A-Q, so if there isn't a lot of pre-flop action and you flop top pair w/ second kicker it plays much like TPTK.

In the first two levels of a SnG, I will fold K-Q from EP. It's not strong enough to raise, and I hate limping and then having to call a raise with it (I won't). I'd rather call a raise with 7-6s than K-Q because after a raise K-Q is often dominated.

In middle position I sometimes limp, sometimes raise if folded around to me. In late position I will always open with K-Q. It has enough value for a raise in late position, and you don't want the blinds to look at a free flop with garbage when most of your good flops will be top pair flops. When it gets shorthanded I will almost always open with K-Q.

I don't usually like to call a raise with K-Q, but if I'm in position against a LAG who will open with weaker hands, I'll call. Otherwise I never call a raise with it in the first two levels (in the later rounds it's read-dependent).

K-Qs is a stronger hand, and I'll always play it a little stronger as well. From early position I'll usually limp, occasionally raise. From middle position I'll always open with K-Qs. If the flop comes 3 rags with two of my suit, I'll play that hand very strongly. I'm also far more inclined to call a raise with K-Qs than offsuit, because K-Qs is a an excellent drawing hand, but if you call a raise with it treat it like a drawing hand, and don't go crazy with just top pair.

If I'm short-stacked and in push-mode, I'm always happy to see K-Q and insta-push with it. I'd rather push with K-Q then A-9, because K-Q is less dominated by calling hands. K-Q is dominated by A-K and A-Q, but those hands dominate any A-x anyway. With K-Q you can coinflip with J-J, which is a pretty good result when you're shortstacked and the 4th best starting hand calls you.

In conclusion, I think K-Q is underrated because too many tight players have a being-dominated-phobia. In a short-stacked tournament however, you simply won't get big pairs and A-K often enough, and K-Q is a good secondary hand. As long as you have decent post-flop skills and know when your top pair is beat, you're in good shape with K-Q.

I'm no expert by any means, and I tend to be a bit on the LAG side, so take my advice with a grain of salt.