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Once dracut adds the patch to create /dev/mapper/live-base pointing to the base image liveinst needs to be changed to use it. That will allow it to work with live images created by livecd-creator (which makes a osmin.img) and livemedia-creator (which does not)
Tested live images created by both livecd-creator (with osmin.img on the image) and livemedia-creator (without osmin.img). liveinst (anaconda-19.31.70-1.el7) successfully installed system from both images. Moving to VERIFIED.
This request was resolved in Red Hat Enterprise Linux 7.0. Contact your manager or support representative in case you have further questions about the request.