Does it really matter any more what the hell anyone calls it? As much as I loathe the UT99 moniker, as there was no mention of "99" in the game other than the year of publishing, I say let the imbeciles call it what they will. But anyone who says the name is officially UT99 is truly not a real UT fan or player. Believe me, I've had someone tell me that it IS called UT99 on the box.
Back on-topic, I'm not sure what purpose such a business model would do for Epic. Is it an indication that giving away a "free" game will bring in more dollars when those same freeloaders decide to actually purchase a game? Hardly. Is it the potential for advertising dollars that could open Epic's eyes? I seriously doubt it. Their big cash cows are the Gears series and licensing and supporting the Unreal Engine. Supporting a browser-based UT game of any old-school flavor does not fit in their operation, as there would be little, if any, payoff.
id, on the other hand, has a much different vision. They appear to have a model in work that may be similar to Steam, in that you have a user client to connect and then you enter the game application. Several game companies are going this route, but not by using the same methods. The only difference is that Quake Live is free for now. But what about in the future when they may want to use this operational concept to release a new Quake game on a new engine? You think that will be free? Nope.
As for UT Live or whatever it could have been called, at least we can live with the idea that it would NOT be called UT99 Live.