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.

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Lining paper is without
Lining paper is without question the best surface you can hang wallpaper onto, as the face of it has the same fibrous texture as the back of wallpaper, therefore they are absolutely compatible. There is a general belief that lining papers are only recommended for heavy 'up-market' papers. Whilst a lining is certainly to be recommended for these papers, it is in fact, more important to use a lining paper on the thinner wallpapers, as these have less ability in their own right to cover up any imperfections in the wall surface.
Hanging onto a lining paper significantly reduces the risk, in comparison to haing onto a painted surface, of wallpaper shrink-back (joins opening up). Lining should not be treated in any way (painted, sized etc) after it has been hung. To do so will effectively re-seal the surface undermining its purpose.
Quoted from the Anstey Wallpaper company 'Product Support Manual'.