It's all the same really if it comes out of a bag. Honestly, I don't think it's all that "live". The bacteria in there isn't as effective as the companies' advertising would like to make you think. Personally, I think the biggest advantage of "live" bagged sand is the fact that it's pre-rinsed and is much less dusty, which makes your tank clear up faster, or if you're replacing a sandbed it doesn't cloudy your tank as much.
Real live sand would be the stuff you'd get from a tank that's been running for a year or more.
I prefer CaribSea Special Grade sand. It's a nice particle size for most tanks. No tanks
need sand. That's your choice. Personally, I don't like the looks of a tank without sand. Your tank lacking sand (from what I understand of your post) is likely NOT the culprit in you losing corals. You would have to look at your water quality and maintenance shedule to see what the cause is. You're much likelier to find your answer if you ask a question like, "Why am I losing corals?".