Given that choice, go with frozen over freeze dried. That steak analogy really points out the reason.
We have one really nice LFS store in town that sells live bloodworms you keep in the fridge and rinse out once every day or two. Wish it wasn't an hour's drive back and forth, so I could go there more regularly. The live worms aren't expensive at all, so when I can I buy a lot of them. Real smelly, but then you can rinse away the yucky water, use decholorinated water.. and freeze them yourself. Depending on the brand, I always end up melting and rinsing the frozen worms I've bought. A lot of times, it's been like half water and only half worms and it's frozen in real dirty water I don't like adding to my tank.