> I will argue that Ogg is better suited for streaming in several ways,
> though you're right that nothing fundamental prevents Matroska from being
> used this way. It will take more work, and requires the files be assembled
> for streaming, as in mp4.
If I understand correctly, by live streaming, you mean something that has no start/end, like a radio broadcast. Not necessarily something like IP multicasting. So if we agree on that, such a Matroska stream would be produced with no seeking info. Therefore any existing player would have no way of seeking (by nature it's live, so no seeking). I can tell you that both DirectShow based players and VLC have no problems with that. They can also handle an "infinite" segment which is basically the only requirement for a player to handle Matroska "live" streaming.
Now, like I said, there might not be softwares that produce such streams. But if there are any software that can produce such livre streams (which are special streaming softwares) in Matroska they would just have to make sure they use an "infinite" segment. I suppose it shouldn't be hard to tweak any Theora live streaming server and add Matroska support for it.