I have sat down this afternoon and worked out my plan for Live 3.
Basically I will write the template code from scratch, the template will be written properly in simple HTML and I will use CSS for as much as possible. I honestly do not need JavaScript for anything with the current plan. I cannot guarantee IE6 support for a lot of the template, but that is the case with most modern websites. We are up to IE8 now anyway, YouTube is currently dropping support for IE6. It doesn't mean it wont work though, I will try to make it work as best possible.
Live 2 has A LOT of JavaScript, the template is practically built using it, its too much of a bandwidth requirement and has too many files for such a simple HFS template. It makes it too complicated to edit and the image server idea was just a bad design decision. (no offense to Alvaro but I think he would agree with that).
Hopefully my version of the template will make it more accessible to newbie users and I like the addition of the template as its interface was specifically designed for handheld portable devices, which is something we are lacking to offer at the moment, other templates will work but they are designed for a PC web browser and resolution.
I will keep the name, so people still know the templates history, but I will remove the windows branding and replace it with something else. I believe the template has a market and it will continue to be a popular choice for HFS users.
As for multi-language support, I noticed Live 2 supported Spanish and English, I will take it into consideration. I could possibly integrate language files like RAWR-Template and ToG but I think its best to start off basic and polish the template first.
I just noticed the template has a flash player in it, however it appears to be broken and buggy... I might replace it with RAWR-Player, but we'll see.