Completely customizable player
Being a front end developer, the way the embeddable player sits on a a site has to be perfect for me and one thing I see missing is the customisation of the player is very limited. There are around 4 size options although each one is pretty similar. There are also 2 colour options and that's it.
What would be good would be a more customizable player with an option to show or hide cover art (and the player would adjust accordingly and as others have said, show or hide album name (although this doesn't matter to me), basically allow us to create our own player to fit with our needs.
Size wise too, I think there needs to be a narrow/slim version of the player that can sit in a header or footer on a site. It can still contain all the required info including the live365 logo but all the controls are aligned next to each other.