To take an extreme, if you go to a mix of 100% lime putty and no sand, then you run into bad shrinkage problems. I know this because in my early days of experimenting with lime, I mixed up some lime putty and spread it straight onto a wall as a thin skim. It ended up looking like a cracked dryed up lake bed! Had to chip it all off :-(
I agree with a previous poster about lime mortar being suitable for pointing due to its 'fatty' consistency ( best if you soak the lime for weeks in a closed container with a layer of water covering it if you want the full 'fatty' effect, I'm told ). Lime is added to cement mortar as a plasticiser sometimes in a 1:1:6 lime/cement/sand mix. If you don't add the lime I believe it's necessary to add either PVA or a proprietary plasticiser solution to get the cement mortar to handle well. I have been guilty in the past of mixing up mortar consisting of
1:4 cement/sharp sand, with no plasticiser at all and found that the sharp sand and lack of plasticiser combination makes it hard to position bricks or slabs well as you often run out of movement in the mortar before you have the brick tapped exactly into place. There's nothing to do then but start that brick all over again.More information than you require though!
Andy.