Many a time, when on interior decorating jobs, I find myself removing loose
lining paper. What often starts off with a loose corner ends up with the
removal of all the paper. When the paper is off, I often I can't see a reason why lining paper was used in the first place.

Lining paper doesn't hide all sins. The walls need to be prepared before the paper is hung. I used to hang lining paper a lot more than I do now but then I started thinking If I just do a little more preparation there will be no need for it and also the finish will be better.

The only time lining paper is really ever needed is if there are cracks in the walls that bounce. That is, if you push on one side of the crack it moves independently from the other. Lining paper may also be needed prior to some wall papers.

The advantages of not using lining paper are:

a betting looking finish (assuming you have done good preparation)
more resistant to knocks
easier to maintain
longer lasting

In fact I can't really think of any advantages to using lining paper.

Lining paper is is a patch not a fix.