Many of the post addressing the live mix are simply done using what is called "real time" bounce in SONAR, as previously stated. There is the desire to capture in real time a live performance of a soft synth to audio when, for instance, the synth has a random option which cannot be predetermined. (I, myself, do not use such a feature simply because it cannot be reproduced at will.) As Craig described, this is not an essential feature as most musicians and producers would not use nor depend on this feature.
Now, as for the loopback strategy, as mentioned, can be easily done with a hardware interface if it provides this function. I do use this with my Saffire for a quick "not so much of a mix" for later reference or transfer to mobile storage, e.g. CD, flash drive, etc. Now there is the simple solution for the Bakers to allow this within SONAR without the fear of the menacing feedback. When a signal is sent from SONAR back to the soundcard/interface and then sent back out to SONAR (loopback), the track for the incoming (loopback) input can have its output disabled when recording. It's just a matter of identifying that incoming signal as a loopback signal in SONAR so it can do this automatically. For instance, in the desired "loopback" track SONAR would provide an input option labeled "LOOPBACK" with the corresponding output(s) from the interface. This could be displayed and checked in the Audio Preference so that SONAR will know/recognize the hardware outputs as the designated loopback signal. So, when a track is configured accordingly, the output would be disabled as long as the input (loopback signal) was enable and vice versa (think grouping in this instance). Presto! Real time record/capture of the performance without feedback. So, in essence the loopback track would be a special/specific track for this purpose (unlike a standard/ordinary audio track). Sounds like another FR for the same old FR submitted time and time again. Not hard to fathom nor implement.
Kind regards,
Living Room Rocker