Live patching is an interesting concept, and I could understand that it would increase the appeal of the Axoloti to people who are familiar with analog modular systems, where live patching can be a natural part of a performance. And as has been mentioned the Nord Modular (but isn't it only the G2 series?) for instance supports this.
However, I would also argue that the use case for the Axoloti and the typical Eurorack system is somewhat different. The Axoloti to me is a building block for building instruments; people build Axolotis into all sorts of enclosures with custom user interfaces, and the graphical patching environment means you can realize your ideas without having to write a single line of code, which is a huge step in allowing people with no programming or DSP experience to create musical devices. In contrast, a Eurorack or Nord Modular is an instrument in itself, albeit configurable. Sure, there are exceptions, such as Martin from the band Wintergatan and his 'Modulin' which is a Eurorack come electronic violin instrument, for instance featured in this video: https://www.youtube.com/watch?v=QaW5K85UDR0, but I think that is rather unusual.
Hence, the Live button I would say is not that much of a hurdle, as I think most users approach the Axoloti with an Arduino mindset, i.e. once it has been configured, the device is primarily used on its own.
The limitation I hit most often is RAM, the second is CPU. So from my very personal perspective, the first major feature I would like to see is the Live button uploading the code directly to flash and running it there, rather than taking precious RAM for this. (Even when flashing a patch to the Axoloti flash, it is still loaded from the flash to the RAM once the patch is started). I realize there may be issues with this primarily in the form of wearing out the flash, so some caution is necessary. Since the CPU time is the second most precious resource, anything that increases the CPU load I would consider to be detrimental.
Then again I would not want to deter @johannes from developing the Axoloti in the direction of his dreams. Any form of development to the Axoloti platform must be good, and can bring in a range of users which until now have avoided it for various reasons.