I never really looked at the code for it, and I may have confused it with another library which I took a closer look at. But yes, the idea is that you can set a starting and end position and it will give you an interpolation between 0 and 1. The simplest example is linear, where 0 equals the starting position and 1 equals the ending position, and anything in between is just an even subdivision. More useful are the other types though, which allow you to have movement that starts out fast and slows down as it gets closer to its target. Then you have ease in and ease out, which allow you to start slowly and speed up or start fast and slow down, or start and end slowly.
Basically it's useful when you don't want to snap directly to a target but move there smoothly. It's a bit hard for me to describe properly, but maybe this video makes more sense:
If you look at the time I've linked to, when the desktop is zooming out it speeds up near the middle and slows down right before it reaches its target. It would look bad if it was just a linear scaling effect, but since it uses tweening it looks 'smooth'.
Anyway, that's an example of how you can apply an effect to a sprite, but it's also useful for fading text and moving views, and things like that. That's why I suggested making it more generic to accept any sort of variable.
Again, if you don't think it's something that would fit into Thor, don't worry about it--I'll probably try to make my own version. I most likely release it, too.