I have line dried the laundry when it is really hot out and it is not to humid out. My area can get very humid which means the clothes would never dry or be very smelly when they did dry.
I like the smell of line dried laundry also. I haven't smelled it in years though. I remember as a teenager, one day while getting laundry in, I was reaching in the basket and was stung by a bee. It was pretty scarring and painful, I don't think I've hung clothes out since then.
Hanging your clothes on a line is a great alternative if you don't have money to buy a dryer, or go the cleaners. i happen to be fortunate enough to own a dryer, and it is definitely better than hanging your clothes on a line. Dryers allow you to use fabric fresheners, and they also remove the wrinkles form your clothes. Hanging them on a line will not allow you to do this. Hanging your clothes on a line will also attract bugs. Which is disgusting. In my opinion using a dryer is definitely better.
I do the line dry thing because it saves money because you don't use the dryer, but most people dont because they say it fades their clothes. You can prevent fading by hanging your colored laundry inside out or in a shady spot. As long as there's a gentle breeze, you clothes will dry just as well in the shade. Still worried about your colored laundry? Then, dry your darks indoors, and hang just your whites outdoors. The sun will bleach away any stains, and help your whites to stay white longer. Try it!