Fair enough! I guess this is what confused me...
An then there is sites such as Ustream, justin.tv etc that doesn't seem to be available on the platform.
If I remember there was a 3rd part Ustream app, but watching livestreams didn't work.
Regardless, I guess it's a discussion for another thread. Thanks for your clarification regarding live streaming and WP7, it's something I've been wondering about as well!
And again, to OP, the developer for FlashVideo for WP7 has stated that he will add support for several "live sports streaming sites", I don't know if there is anything of interest to be found there but still worth a mention I feel.