Photoshop Live Effects are still new to me, as I just recently upgraded from Fireworks 8. This post from Jim Babbage echoes what Linda just said about them (that is, they help to maintain continuity between Photoshop and Fireworks):
http://forums.adobe.com/message/2862805#2862805
The case of "Jitter" is interesting though. It can only be applied in Photoshop and only if the gradient option is chosen. Yet when I tried this, and then opened the PSD file in Fireworks, the appearance was maintained but none of the correct settings appeared in the Photoshop Live Effects dialog. And adjusting the settings had no effect either. That doesn't really fit my idea of a "live" effect. In fact, it seems more like a flattened effect—except that its editibility is maintained if the file is reopened in Photoshop.
Maybe they should call them Photoshop "hibernating" effects. ("They're not dead—they're just asleep!")
Clearly, there's room for improvement here. It begs the question: Why include a slider for something that can neither be created nor adjusted in the application? (Of course, I'd rather they figure out a way to add support for gradients here than just remove the slider.)
