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Outside of a GeoCities or Tumblr page that's made up of an obsessive amount of GIF posts, they are already small in size, audio-free, easily embeddable and non-CPU intensive.

I can't imagine what's more basic in an image-sequence format than a series of JPEGs rapidly playing in succession of each other.

it's not small in size. take any 30 frame moderate sized gif and you'll see a 2-5mb download.
 
It's not working for me. Every time I go to create a GIF it hangs.

I'm the developer of Live GIF. We've seen a few reports that Live Photos that are shorter than 2 seconds cause the app to hang converting to GIF. We already have a fix for this queued up. Most Live Photos are 3 seconds long, but sometimes iOS trims them to shorter lengths. I can give you a Test Flight invite to get the latest build while we wait for App Review if you're interested, just PM me your email. Thanks and sorry about this!
 
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I actually wish there was a way to create live photos from a gif or a video file. That way I could make some killer motion lockscreen wallpapers!

Ya that would be cool. In iOS 9.1 SDK you can create an Live Photo object (PHLivePhoto) and display them (in PHLivePhotoView). But there is no way to write Live Photos back to the camera roll yet unfortunately.
 
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