The song lyrics were written by the band Van Halen, as they were asked to write a song for the 1979 movie "Over the Edge" starring Matt Dillon. The movie (and the lyrics, although more obliquely) are about bored, rebellious youth with nothing better to do than get into trouble. If you see the movie, these lyrics will make more sense. It's a great movie if you grew up in the 70s/80s you'll definitely remember some of these characters from your own life. Fun fact, after writing the song, Van Halen decided not to let the movie use it.
Sweet surrender on the quayside
You remember we used to run and hide
In the shadow of the cargoes I take you one time
And we're counting all the numbers down to the waterline
Near misses on the dog leap stairways
French kisses in the darkened doorways
A foghorn blowing out wild and cold
A policeman shines a light upon my shoulder
Up comes a coaster fast and silent in the night
Over my shoulder all you can see are the pilot lights
No money in our jackets and our jeans are torn
Your hands are cold but your lips are warm
She can see him on the jetty where they used to go
She can feel him in the places where the sailors go
When she's walking by the river and the railway line
She can still hear him whisper
Let's go down to the waterline
Come on
You remember we used to run and hide
In the shadow of the cargoes I take you one time
And we're counting all the numbers down to the waterline
Near misses on the dog leap stairways
French kisses in the darkened doorways
A foghorn blowing out wild and cold
A policeman shines a light upon my shoulder
Up comes a coaster fast and silent in the night
Over my shoulder all you can see are the pilot lights
No money in our jackets and our jeans are torn
Your hands are cold but your lips are warm
She can see him on the jetty where they used to go
She can feel him in the places where the sailors go
When she's walking by the river and the railway line
She can still hear him whisper
Let's go down to the waterline
Come on
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There is still an amazing amount of hope and will in the lyrics; and the lyrics themselve rank and easy five. If only music was stronger it would be one of those great radio songs that you hear once a week 20 years after it was released. The imagery is almost tear-jerking ("City lights lay out before us", "Speeds so fast felt like I was drunk"), and the idea of starting from nothing and just driving and working and denigrating yourself for a chance at being just above poverty, then losing in the end is just painful and inspiring at the same time.
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I think your first comment is closer to being accurate. The singer/song writers state "Millions of eyes can see, yet why am i so blind!? When the someone else is me, its unkind its unkind". I believe hes referring to the girl toying with him and using him. He wants something deeper with her, thats why he allows himself to be as a puppet (even though for her fun and games) as long as it makes her happy. But he knows deep down that she doesnt really want to be serious with him and thats what makes him.
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Ed Sheeran tells a story of unsuccessfully trying to feel “Amazing.” This track is about the being weighed down by emotional stress despite valiant attempts to find some positivity in the situation. This track was written by Ed Sheeran from the perspective of his friend. From the track, we see this person fall deeper into the negative thoughts and slide further down the path of mental torment with every lyric.
I've been listening to this song since it came out 40 years ago. I always interpreted it literally -- they are hiding on the docks to secretly make out and they see the numbers on the ship which tell how low the ship is riding in the water. The numbers count down to the waterline of the ship.
Today I suddenly realized the title may actually be a double-entendre. The couple is likely engaging in more than kissing in darkened doorways, as they have "near misses" and almost get caught by a cop. Which makes me think that "counting all the numbers down to the waterline" could be a playful metaphor they invented for counting the buttons as they unbutton their clothes, down to the metaphorical waterline and to "sweet surrender on the quayside". Later she's dreaming about her first love/ first time, or rather the singer is imagining that she's dreaming about it.
Just an idea; the song could be about a more innocent love, but the evocative phrasing of their encounters seem to suggest that the title line means more than just checking out the ships while they are in the neighborhood.