Main Purpose of Tcode SMQ1 qRFC

Explain the main purpose OF T.code SMQ1 qrfc queue.
SMQ1 is the Tcode where you can view the delta queue for the delta enabled extractors.
SMQ1 is generally a outbound queue used to monitor the status of Logical unit of work for different data source used in BW .
The QRFC monitor , we can say is same as Delta Queue (RSA7) , but the we can't identify the current and repeat delta in QRFC but in RSA7 we can find them seperately. So better to use RSA7 for the monitoring purpose.
In RSA7 also we can view the delta queue then what is the difference between RSA7 AND SMQ1.
Any changes or new posting will hit the qRFC queue immediately and this will be reflected in that queue. To pull to BW we need to run the job control to get it collected in RSA7. The RSA7 queue has the entries which are to be pulled to BW.
Clearing SMQ1 Queue   

In a test phase, I want to clear all the entries from a queue in SMQ1, there are 450 or so LUW's.  Is it necessary to delete line by line?  This is a slow process, maybe if this is not possible through the standard transaction then someone might have some code to do so through the qRFC API? 

If this a test system and you are sure to delete all queues, why don't you do a select all F5 in the first screen of SMQ1 and click delete.
'Select All' and 'Delete Selected' options are available in edit menu. 

Deleting an outbound queue SMQ1   
Is it ok to delete an outbound queue in smq1? The situation is, we have tried a delta load but we already aborted it since it is not needed anymore. But when we check on smq1, the queue is still there and it's status is running (transaction executing). What will happen if that queue will be deleted? will it cause data lost? 

Yes you can delete queue in SMQ1. Make sure you also delete delta events for that object R3AC4 so that NO more deltas will come to CRM.
You can delete it. You won't loose ay data, because this will delete any queue that sends data from one system to the other and will note delete data on the source side.
This shouldn't be a problem. And there won't be any data loss. however you might see additional table entries in your CRM or ECC (depending on what was the destination) for the LUWs that were already processed in your delta load.

Also read
Difference between RSA5 and RSA6

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