From my experience, a live album serves to showcase the true talents of a band. They can't hide behind multiple takes, over dubs, or post processing (for the most part). The true musicianship of the artists are revealed, and I believe it can be a vital asset. But then I can think back to a few times where a bands live reputation overshadowed their studio accomplishments, and some bands will never make a live album, simply because they sound terrible. Every once in a while lightning does strike, and the live version of a song will be better than the studio version. Sometimes, you can only capture that chemistry in a live situation, and that's where the importance lies in recording that moment.
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