P.J.-
This thread probably should have been started in the engineering forum, to avoid unfriendliness directed toward those who try to provide answers. Oh, well...
The thrust line is just an imaginary line that passes through the source of thrust (center thereof) in the direction of thrust. In geometry, lines are straight, infinitely long, and have position and direction. They are descriptive in this case because of their position and direction. This is important, but not the whole story; it is not sufficient to tell the story quantitatively.
In particular, thrust is a force, a push or a pull. To understand the model's behavior, we need to know how much push or pull there is and where it acts. Forces are quantified by how much they can accelerate a given mass: F = ma, by Newton's second law of motion. That is, the force necessary to accelerate a given mass by a given acceleration is equal to the the product of the mass and the acceleration: F = m x a. Forces have magnitude and direction, which makes them what we call "vectors". They also have points of application. So to a certain extent, by showing the line through which thrust acts, the "thrust line" helps describe the effect of a model's thrust.
Thrust is the force that overcomes aerodynamic drag, accelerating the plane in level flight, until the drag rises (as the square of the speed) to equal the thrust (net fore and aft force equals zero), at which point the plane reaches a constant "top" speed (fore/aft acceleration is zero). That speed provides the air's interaction with the wings to provide lift. When the plane is pitched upward, the thrust provides some of the lift (i.e. the vertical force), while gravity joins the induced drag (drag from lift) to reduce thrust available for propulsion. If thrust equals or exceeds the weight of the plane plus the parasite and induced drags, then the plane can climb vertically, without losing speed..
So where does the thrust line come into this discussion? Several ways. Al covered one in his discussion of down thrust, where he discussed aerdonymaic effects. There are a couple other basic areas, which I think are at the root of your question. One is that the direction of the thrust (down thrust, or the familiar out-thrust for line tension) affects how much thrust is available for propulsion. The other is the positioning of the thrust line, which concerns moments (leverage to rotate the plane) about the plane's center of mass, or "c.g." as we call it. This is an important consideration in down-thrust and out-thrust too. In all of these cases we must talk about components of thrust in directions of interest.
I have to leave here in about 20 minutes (I hope!). So cutting this short (!), the diagrams below may suggest answers to your questions. The first one simply shows the components of a thrust vector in two perpendicular directions - like "forward" and "down". You can see in it that tilting the thrust vector downward diminishes the forward thrust slightly, while creating a downward force component. The second shows how a high thrust line can create a moment (torque) about the c.g. to, in the case of the Sterling Yak-9, tend to pitch the plane down. Such a torque must be countered by drag forces above the c.g., up elevator deflection, and Al's gyroscopic precession. The torque is defined as the product of a force (thrust here) by a lever arm, the distance it acts above the c.g. in this case. The torque or pitching moment here is defined as the thrust multiplied by the perpendicular distance from its line of action ('thrust line') to the c.g. This analysis works with out-thrust to show how it helps by bringing the thrust line inboard of the c.g. to rotate the plane's nose outward, if the c.g. is in a reasonable place (not too long an inner wing, enough tip weight...). The c.g. must be far enough out that the thrustline passes inboard of it. Gotta go!
(Edited later to embellish some and correct a typo; 'down' and 'up' where interchanged. Also diagram corrected to return c.g. to original height; add 16 to number of views)...and I'd thought I'd typed "precession".
SK