I think I used 'C' and the left 'Shift' for vertical sliding in my all-keyboard Descent II configuration. (FYI, you'll need to dislocate a couple fingers to properly triplechord while fighting in Descent with that config.)
I'm not sure a direction-of-flight indicator be much help under a Newtonian flight model, though. The problem isn't discerning which direction I'm travelling in relation to which direction I'm facing; it's how to quickly get moving in the other direction without either coming to a complete stop first or having to make the widest damn turn man has ever seen. The short answer is that you either have to really reign in your speed (which may only serve to shorten the jousting field) or settle with a non-Newtonian flight model.
That said, I do rather like what Beyond the Red Line and Freelancer did, allowing the player to switch between arcade and Newtonian physics models on the fly. It's not always easy to get a handle on when to push the button, but that solution really does allow players to taste the best of both worlds.