As a Licensed radio station owner and DJ I don't think it should be included on VLC, because technically if you wanted to you could just put on a stream day after day and get free music off someone else performance.
Song Composers and Song Artist are now all up in the arms race so to speak about online radio stations not paying their full royalties and this record feature in my own opinion just stirs this vicious pot, of angry music performers and musicians both not getting paid fully. and it could generally cause each and every single ICECAST radio station to be shutdown or worse sued and shutdown by a disgruntled music performer or song writer
I don't feel comfortable with stream ripping software, because it does enable someone to download a program like VLC or something similar just to get free music and put it on a hard drive therefore ripping off the artist and the streamer both.
Yes I am aware of recording radio cassettes back in the day but I stream 24/7 without any commercials and no plans to ever do so in my stations future and I don't want to get sued for some crime I didn't commit. If you read the Internet this record live stream feature could even shutdown VLC project