What is the purpose of a networking model? How will knowing this theoretical stuff help me in administering my TCP/IP network?

The models give us a way to understand the process that takes place when computers communicate with each other across the network, the order in which tasks are processed, and which protocols are responsible for handling which duties. Understanding the models will help you to narrow down the source of your TCP/IP connectivity problems. For example, if you know that the data is being sent but is not arriving at the correct destination, you will know to start troubleshooting by examining what is happening at the Network layer, since that's where addressing and routing takes place.