The live preview isn't totally perfect yet - but I figure for now it is good enough to release to people. I am continuing to work on the issues with it, though. I'm also working on moving Kaleidoscope over to the new engine today!
I'm also contemplating creating a github for the existing libgdx livewallpaper extension that I updated, so that other people can use it to develop wallpapers as well. The more the merrier :-)