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I had assumed this would be a VST plug-in so you could integrate everyone into (for example) an Ableton Live set with whatever other audio/midi manipulation you want.

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Using audio devices directly makes it possible for any audio application to use it, not just applications supporting VSTs. Makes it more flexible, not less. A VST could be built on top of the current solution, but if it was done vice-versa, it wouldn't.

Exactly. I have a prototype VST plugin which pipes the audio from the DAW into the application.

VST frameworks like JUCE export to VST or stand-alone. So you get both for free. Much easier and more flexible.

Also DAWs don’t typically allow you to interface with multiple audio devices. There are ways of doing it but they have major downsides.

Yes JUCE is da bomb

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