Liquid and Dry yeast are BOTH "Live Yeast" your beer wouldn't ferment with dead yeast.
Based on what I'm gleaning by your descriptions of things, please don't be offended if I say that your understanding of the basics of fermentation and the bottling process is very limited, and becuause of that your reading of Kaiser's work and using defning what's happening to you, and what happened to your earlier beers is tantamount to reading,
Sabiston Textbook of Surgery: The Biological Basis of Modern Surgical Practice on your first day of med school and attempting to perform brain surgery, without even taking gross anatom.
The simple fact that you keep calling dry yeast "dead" yeast gives me some pause.
S-04 and S-05 are not "generic" yeasts, whatever that means. 04 is an english ale strain, while 05 is the same "chico" strain that is in liquid form by both wyyeast and whitelabs. 05- is a clean, neutral ale yeast used for many american ales, whether they are IPAs or Stouts.
And Liquid and Dry both have their place.
I have found that a lot of new brewers especially, THINK they HAVE to use liquid yeast, but in reality most ales can be made with Notty, Windsor, Us-05, Us-04 and many lagers with basic Saflager.....7-8 bucks a pop for liquid as opposed to $1.50-2.50 for dry, with more cell count, is imho just a waste of money for the majority of a brewer's recipe bank...most commercial ales us a limited range of strains, and those liquid strains are really the same strains that the afore mentioned dry strains cover, for example Us-05 is the famed "Chico strain", so if you are paying 7-8 bucks for Wyeast 1056 American/Chico Ale Yeast, and you STILL have to make a starter to have enough viable cells, then you are ripping yourself off, in terms of time and money....
I use dry yeast for 99% of my beers, for basic ales I use safale 05, for more british styles I us safale 04 and for basic lagers I use saflager..
The only time I use liquid yeast is if I am making a beer where the yeast drives the style, where certain flavor characteristics are derived from the yeast, such as phenols. Like Belgian beers, where you get spicy/peppery flavors from the yeast and higher temp fermentation. Or let's say a wheat beer (needing a lowly flocculant yest) or a Kholsch, where the style of the beer uses a specific yeast strain that is un available in dry form.
But if you are looking for a "clean" yeast profile, meaning about 90% of american ales, the 05, or nottingham is the way to go. Need "Bready" or yeasty for English ales, then 04 or windsor. Want a clean, low profile lager yeast- saflager usually does the trick.
Even John Palmer, who's book
How to brew, I really think you need to read BEFORE you try to tackle kai (consider it the
Grey's anatomy of brewing books) doesn't bash dry yeast.
Palmer doesn't bash dry yeasts...
Yeast come in two main product forms, dry and liquid. (There is also another form, available as pure cultures on petri dishes or slants, but it is generally used as one would use liquid yeast.) Dry yeast are select, hardy strains that have been dehydrated for storability. There are a lot of yeast cells in a typical 7 gram packet. For best results, it needs to be re-hydrated before it is pitched. For the first-time brewer, a dry ale yeast is highly recommended.
Dry yeast is convenient for the beginning brewer because the packets provide a lot of viable yeast cells, they can be stored for extended periods of time and they can be prepared quickly on brewing day. It is common to use one or two packets (7 - 14 grams) of dried yeast for a typical five gallon batch. This amount of yeast, when properly re-hydrated, provides enough active yeast cells to ensure a strong fermentation. Dry yeast can be stored for extended periods (preferably in the refrigerator) but the packets do degrade with time. This is one of the pitfalls with brewing from the no-name yeast packets taped to the top of a can of malt extract. They are probably more than a year old and may not be very viable. It is better to buy another packet or three of a reputable brewer's yeast that has been kept in the refrigerator at the brewshop. Some leading and reliable brands of dry yeast are DCL Yeast, Yeast Labs (marketed by G.W. Kent, produced by Lallemand of Canada), Cooper's, DanStar (produced by Lallemand), Munton & Fison and Edme.
Dry yeasts are good but the rigor of the dehydration process limits the number of different ale strains that are available and in the case of dry lager yeast, eliminates them almost entirely. A few dry lager yeasts do exist, but popular opinion is that they behave more like ale yeasts than lager. DCL Yeast markets two strains of dry lager yeast, Saflager S-189 and S-23, though only S-23 is currently available in a homebrewing size. The recommended fermentation temperature is 48-59°F. I would advise you to use two packets per 5 gallon batch to be assured of a good pitching rate.
The only thing missing with dry yeast is real individuality, which is where liquid yeasts come in. Many more different strains of yeast are available in liquid form than in dry.
Liquid yeast used to come in 50 ml foil pouches, and did not contain as many yeast cells as in the dry packets. The yeast in these packages needed to be grown in a starter wort to bring the cell counts up to a more useful level. In the past few years, larger 175 ml pouches (Wyeast Labs) and ready-to-pitch tubes (White Labs) have become the most popular forms of liquid yeast packaging and contain enough viable cells to ferment a five gallon batch.
I think your "flavor" issues with dry yeast comes from either your specific use of more "generic" dry yeasts, or more than likely came form some other aspect of your brewing process.
The Yeast like Notty, Us-05, u-04, and many others, made my Danstar, and fermentis are some of the best yeast around, they are just as good as the liquid strains, in fact,
many are the exact same strains as those by whitelabs, and wyyeast, just in dry forms.
Good quality dry yeast has been used by commercial breweries for decades if not longer, and it was only since Homebrewing was legalized was the stuff we know available to homebrewers.
That's why every dry yeast house has
industrial divisions.
Danstars website even alludes to this...
The use of active dried professional yeasts for amateur brewing is a relatively new phenomenon introduced by Lallemand. Now, choose your active dried yeast for brewing with confidence. Ask for Danstar superior quality yeasts at your local retailer.
And this from Fermentis....
Beer Industrial Brewing Why use Fermentis Yeast
Kai is great, but he's only one
opinion and it appears you are basing your understanding of things soley on that.
Honestly, like other's have said, you only need to add fresh yeast at bottling for a very limited set of reasons, NONE of which tend to be in the normal course of our brwwing. The only real reason to do it would be for an extremely high grav beer, where the yeast has been exhausted, or where one has bulk aged for a year or more and the yeast has gone dormant for a long period of time. But in a normal brew, it is unnecessary. And I believe if you read kai reasoning for doing it, you would see the same thing...for certain beers, perhaps, but not for everything.
Besides, Kai tends to focus and write extenseively on
Traditional German Brewing Techniques many are historical in nature. And as interesting as they may be, and as necessary as they may be for recreating certain specific styles of german beers. They don't necessarily apply in the regular course of brewing.
I would encourage you to do some further reading of other things, especially Palmer's book, and expand your understanding of the fundamentals of brewing, and of yeast, and you will realize that there are many ways to approach things. And usually they ALL work.