Translation - thyroid hormone is intimately connected with metabolic rate and protein synthesis in the body. If you are hyperthyroid (excess or abnormally high thyroid hormone), or make yourself hyperthyroid by taking thyroid hormone when your body is already producing enough of it, your metabolic rate will increase - your heart will beat harder and faster, you will always feel hot, you will have diarrhea, etc - and your baseline oxygen consumption will consequently increase - because your organs are being flogged into working too hard. Not surprisingly, your body will attempt to compensate for this increased oxygen demand by delivering more oxygen to target tissues, and one way it does this is by making more red cells. And it does that by making more epo.
I think it is stupid to try and apply this to sports performance. OK, let's say you make yourself hyperthyroid by ingesting thyroid hormone when you don't really need it. You will flog your body into making more epo and more red cells, but you will also increase your baseline metabolic rate and use up all that oxygen. Sort of like setting the idle on your car really high. Being hyperthyroid will really screw up your body, believe me. After a while you will start to feel fatigued and worn out and feel like crap.
If you want more red cells, eat a healthy diet and consider moving or training at moderate altitude - Flagstaff is nice this time of year. It's a lot safer and even if your performance doesn't improve that much, maybe you will have had a nice summer anyway.