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I guess you only need one person to do it, and then all of the consumer Kodi boxes will also be seeding.

Does live(ish) bittorrent streaming work?

Yes, it does. Most popular bit-torrent p2p streaming solution now is Acestream. You can check it yourself.

However, I doubt that 'fully loaded' Kodi boxes uses it, most likely it use simple m3u streams harvested from internets.

I didn't know acestream was p2p. I think I may have used it one or twice. Very cool.