I could see where you are coming from, but I have to respectfully disagree. I think with the right performance, recording, and artists, the results can be amazing.
I love the raw Live at Leeds (deluxe version) just as much as the polished Tommy. I think Live Europe 72 and Live/Dead are my favorite recordings of the Dead. Hell I don't listen to the dead's records!
And Sam Cooke's Live at the Harlem Square Club 1963?! That album is pure fire!!!
Not to mention The Mark Tom & Travis Show (blink) & Our Live Album is Better Than Your Live Album (Reel Big Fish). While both feature many, many overdubs, I think they are both my favorite records in each bands catalogs. And Scab Dates (The Mars Volta) and Live from Bonnaroo (Rx Bandits) both cemented each of those bands as some of my all time favorites. But hey to each his own!
Among my many issues with it, for one, I just don't like to hear the clamor in the background. "Woooo! Ahhh *clapclapclap* Hahahah" etc it's like ok, haha. I don't need to hear it! Also, when they crack jokes or are making a profound statement, you feel you missed something - the facial expression, the context that could've not been picked up entirely, the ambience, and more...just doesn't do it for me, you know?