Such speculation seems bizarre to anyone that has noticed that Apple has been using the 'iTunes Live' tag for some time to describe live performances at Apple Stores and the sale of recordings made at those sessions via the iTunes Store.
In which classes has Apple filed the 'iTunes Live' trademarks? Class 35, "Online retail store services in the field of entertainment featuring prerecorded musical, audio and audiovisual content" and Class 41 "Entertainment services, namely, arranging and conducting of concerts and live musical performances."
That precisely matches the existing use of the trademarks.
The applications also note that the first use of the logo was in January 2008, with the words 'iTunes Live' being used since June 2006.
We may yet see iTunes offering one-time free plays of any track in the catalogue, or the ability to stream your purchased tracks to any device. But there's nothing in the 'iTunes Live' trademark application that really relates to those possibilities.