Question about placing Photoshop images in Illustrator

Hi
Someone asked me for advice because they are trying to place a Photoshop image in Illustrator.
Is this a good idea?
It's unknown whether they are trying to Livetrace the image, Or just leave it sittin' pretty, so they can sketch around it and have it visible as a "placed" image before they export it to InDesign.
I don't think that they want to live trace it, i think they just want to put the image there so they can see it as they work.
What are the options?
Can these photoshop items in Ai become linked like they do in InDesign without any problems?
From what i hear it is not a good idea to "place" Photoshop images in illustrator, without live tracing them, because everything in Ai needs to be vector anyway.
thanks for any advice

>havent you noticed that whenever you live trace and expand a color image, it becomes thousands (sometimes tens of thousands) of separate vectors and consequently becomes very hard to move and work with?
Which is a very good reason not to do that.
>How do you just place the image in illustrator as sort of a placeholder image or linked image (non embedded) and work with it quickly as part of an Ai sketch, without needing to vectorize everything upfront? (by that i mean live trace/ expand
File> Place. Done.
>I've never seen someone trying to use raster images in Ai like it was a normal everyday thing.
You need to get out of the house more. It is done all the time.

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