I know I'm not always very clear on my typing, so I will try to explain better:

It was my understanding that the reason a soaring character blocks LOS (all figures grounded right now) is because LOF passes through the soaring figures base.

In that same vein of logic (there's that word again), if the shooting and target are both elevated, then the LOF ignores the grounded base.

I'm not trying to argue a rules change or anything, I'm just trying to understand the rules better. Thanks for helping Tsannik.

First off, apologies re misspelled name, but the edit function is borken.

:P
Don't have the rules handy, but I guess I'll just file this under WK doesn't know how to write rules wel.l Since that passage is quite ambigous, this is something that should be covered in the FAQ.

Are you sure that all soaring figures are elevated?

Well.... this is going to be a problem....but here I go.

Soaring figures are neither Grounded nor Elevated.... they are Soaring.

So, just in answer to your question... No, Soaring figures are not considered to be Elevated when they occupy an Elevated square.

so...is my logic (dang that word!) off then?

Now I'm confused.

You say:
and the passage from the rulebook is:
Ergo soaring figures do not block the line of fire from elevated figure to elevated figure.
But you also say:
Which strongly implies that soaring figures do block the line of fire.

Please clarify.

ROFL. It is so funny to me when the mechanics of a game break down under close scrutiny.

Does this help:
A soaring figure whose base is on the ground blocks line of sight for other figures whose bases are on the ground, except Sentinels.
So, a soaring figure whose base is on elevated terrain will block LoS for other figures whose bases are on elevated terrain, except Sentinels.