I have no problem with this. I say things (and you probably do too!) like "The scissors live in the drawer." or "Don't leave your pencils all over the table, they live in the box."
A secondary use of "live" - in British English anyway - is to be usually kept or found in a particular place.
"No man but a blockhead ever wrote except for money." Samuel Johnson.
I know I am not timely in answering this, but first of all, I don't think in the U.S. we use "live" that way. Second of all, it wasn't clear at all to me that it was on the first page of Onelook. I went through all their verb definitions, and you had to push the envelope a little for that one, unless of course I missed something.