I don't quite understand how. I thought the main point of Reason was that you get several different soft instruments of decent quality, and (virtually) unlimited instances of those instruments which can be creatively patched among each other, within a single, low-resource, stable application instance. And since the sequencer in Reason is crap, you don't bother with it (unless Reason is your ONLY music app), you just ReWire it into another host and use it like you would any other set of virtual instruments.
Live is a host, not an instrument bank. How can you say that one competes with the other?
Thanks in advance for my education.