Hey, so FTP, like you noted means File Transfer Protocol. An FTP program, simply allows your "local browser/server" (files on your computers hard drive) to directly transfer files to your web domains "remote" server. Microsoft does not allow specific FTP use, but as you can tell by the image and document uploader, they use a very basic public version which allows you to upload specific documents and images to your websites/domains servers. These documents and images can be downloaded or published on your website.
So why FTP? FTP allows you to do a hell of a lot more. It allows you to upload full folders, containing thousands of pieces or images, in addition to additional scripts, sheets, and code which will dictate how those folders are opened and run from your website. Simply put, it allows your website to access more complex programs to display and broadcast. Programs of this nature would include CSS (Cascading Style Sheets), XML, and most intrigungly, FLASH. The beauty of flash is that it is one of the most interactive and generally used computer language. Almost all flash require separate folders for images, thumbnails, and scripts. So, Office Live not FTP does severely limit your designing capability, however it was made for small businesses and personnel who do not have extensive computer programming knowledge.
If you check out my company's website www.amorfati-arts.com and others our company has produced, you'll see we've been able to use the Office Live platform and add many additional features so that it can compete with higher end websites (we even used Flash! albeit, basic). If you have any questions or would be interested in our design services, fill out our form after checking out our other websites we designed: www.amorfati-arts.com/website.aspx
Sincerely,
Dominique | AmorFati Arts, LLC
www.amorfati-arts.com | info@amorfati-arts.com
Dominique | AmorFati Arts, LLC
www.amorfati-arts.com | info@amorfati-arts.com