The marked water line should never be below the actual water line, ideally it is about 1/4 to 1/2" above the actual water line.
Any surfactant type additive, generally organics, stress coats, dechlorinator, amino acids, vitamins, medications, algaecides.
The only point the airline mod serves is to make the air adjustment more accessible if it would otherwise be difficult to access due to a tight fit in a compartment, it will generally reduce the air flow due to the longer hose.