The problem with editing the program's objects directly is that it is not very powerful in its capability: fine if you want w to always be red, but not fine if their are a hundred w's to edit individually, or if w is red because of some kind of active condition. In any case, hot code replacement doesn't really help either; its useful for sure, but the next step is to change the program's state retroactively [1] to match the new code. Smalltalk never went there, and probably couldn't given the hardware constraints of the time. But now, I think we can go there.
The Pharo folks are claiming that their system supports live programming capabilities, but it is just the same old live object/fix-and-continue features that Smalltalk has had for ages. I suspect that they just really don't know what live programming means, and are latching onto the word because its "trendy."
[1] http://dynamicaspects.org/blog/2012/08/15/changing-the-past-...