Good post, OP! I'm glad that you enjoyed my book.
I think that if the RIGHT person at WOTC were in charge of a Living Campaign, regardless of edition used, it could do well as long as that person had really learned valuable lessons from Living City, LG, LFR, PFS, and even obscure campaigns like Living Death. Problem is, even those of us who were Triad or Circle members during Living Greyhawk, and, I imagine, LFR admins (I'd have to ask my old buddy Konrad), probably can't agree on what makes a Living Campaign work (the rift between the European and American styles is, imo, especially significant). However, that being said, I still think WOTC should try it. If one were to take the best aspects of Living City, LG, and PFS, I think one would end up with a really great, and significant campaign.
Good gaming!
aurdraco
aka Casey
BK Triad 2005-2008