I'm by know means an expert on this topic, but what I've observed over the years, studied and believe is when you start with two quality animals you can magnify those qualities. Look at some of the linebred Buckeroo or Rowdy - awesome stuff!
I wrote about this topic on my blog last Spring -
wescofarms blog There's a good link to pedigree matching, which was a new term to me, but what I've been doing, without knowing it for years.
Breeding in general is not something to jump into lightly. It can have disastrous results magnifying bad legs, bites, etc. Not to mention if you have two horses carrying a recessive dwarf gene, well not a good thing.
This was not a linebreeding issue, but a genetic one, but I bred two smaller Minis one year, thinking smaller will make smaller, not taking into consideration that both had a tad longer back than desirable. The resulting foal small, but long backed. Not a dwarf (ran it past John Eberth and others), but a small long backed Mini - beautiful head, long neck, wonderful topline, straight legs/bite - but just longer than I wanted to see or use in a breeding program. Not quite a sausage, but not what I wanted to see! After studying the pedigrees/conformation on the grandparents, great grandparents it was obvious I shouldn't have attempted that cross. Fortunately the filly is in a wonderful lifer pet home.
In our herd we have a few double breds, some from half siblings, and what we've seen is the size reduced, quality stayed (yeah), but we lost our color, from a loud splash overo, and her tovero daughter, we have five generations down, the last three are all under 29", but solid. Callita 34"> Mardi Gras 33.50"> Calypso (half sibling parents) 28.50" > Jamaica 27.50" > Vanna 27.25". Some of our best crosses have been Callita's foals bred to each other, but it's been years of observing her foals and what she produces to see that. Just this year, we had an accidental breeding of one of her daughter's to her half brother. Gorgeous blue-eyed buckskin colt that sold before making it on our sales list.
But linebreeding, I've doubled up on Rowdy & Buckeroo with great results. But again, it was alot of studying pedigrees and other breeders. You do need to be very thoughtful and do your research. I've seen other lines attempted that don't always work as well.
You will have many swear its a bad idea, and I think that's fine too. It's everyone's choice to do or not. BUT in any species of animal being purposely bred, setting a certain 'look' or 'quality' generally comes from linebreeding. I've studied alot of dog breeders as they've been doing this longer than Minis have been around. The same goes for most of the small show animals such as rabbits, cavies, even mice and rats. Genetics is genetics and no knowledge is wasted.
You're doing the best thing right now, educate yourself - alot. I personally wouldn't hesitate to buy certain lines (I do research them), that are linebred or doublebred, but again it's knowing what genetics you're dealing with and the potential outcome both good and bad.