On the official Band in a Box website, the header proudly proclaims that you can "just type in the chords for any song using standard chord symbols (like C, Fm7, or C13b9), choose the style you'd like, and Band-in-a-Box does the rest." What Band in a Box can accomplish is truly remarkable along these lines. Many in the industry use it to create rehearsal demos to bring to artists or bandmates. Some even use it to computer-generate individual parts that go into final mixes.
The typical Ableton Live user takes Live out of the studio to the stage. Although Live versions 7 and 8 have added lots of tips and tricks to make it a more complete audio production suite, Live's real strength is right in its name. Remix artists and Internet radio heads use it to cut and clip multiple tracks together, adding samples and MIDI tracks to their heart's content. DJs use Ableton's fine product as their primary performance software.
There are better options, namely Pro Tools, when comparing Band in a Box vs. Ableton Live for pure recording. Still, each have found their niche market.
Band in a Box is particularly good at spitting out synthetic drum tracks to go with your sample or chord changes and beat style. Also, it has neat harmonizing features that will automatically shift pitch of vocal or instrumental tracks for something far more interesting and real-sounding than basic chorus effects.
Ableton Live has the best time-stretching capabilities in the business, which is why it is a hit with so many stage artists. Those same capabilities are worth its moderate price tag in the studio, too. Imagine recording a guitar solo at 60 bpm, only to move it up to 90 bpm in the final mix. Live can do that.
It is in mixing that Ableton Live makes Band in a Box look like a toy. While both can mix MIDI with audio tracks, Live is primarily a mixing software platform with recording studio features.
Band in a Box can do its own form of mixing with its automatically generated tracks, but the results often come out sounding more than a bit like elevator music, no matter how many humanizing presets are used. If you want to record or remix and you are a multi-instrumentalist or a band, you simply don't need Band in a Box, whereas Live can prove essential.
Both Band in a Box and Ableton Live target an individual rather than a complete group, but which is right for you as a musician or producer. If you seek to produce rough drafts to take into the studio or your bandmates later, with the occasional professional use thrown in, choose Band in a Box. If you are into making remixes or are a professional working DJ or producer, Ableton Live is a great choice. If money is not a big deal, get both.
Winner: Ableton Live