I have Apple TVs and have a Sony remote color button mapped to Live which brings me back to my last live channel. I have mapped that button to my One for All Streamer remote by recording the Sony's color button.
I haven't followed the details of what the button isn't doing for you, but for me it will go to the last live TV channel I watched. If you keep hitting it then it will toggle between two channels. It will not retain buffer while its doing that. Retaining buffer would be nice, but I expect that Channels isn't doing that because their tuner management isn't as robust as Tivo. If you run out of tuners, you can't on the fly tell it to release one for live TV. You'd have to into the Recordings view and stop a recording to free up a tuner. With multiple streaming devices sharing tuners on an HDHR, I expect that hanging on to buffers would make this problem a challenge to manage by potentially doubling the number of tuners being held by streaming boxes that are in live. We only have two adults in the house and with recordings I was running out of tuners with an HDHR Quatro, so ended up adding a 2nd one.
It would be nice to toggle between two stations with buffer in tact, but its not a show stopper issue for me. If I really wanted to watch two live shows and toggle between them with buffer, I'd do the following. Go to a channel from Guide. Select down arrow and hit record. Go back to Guide and select another channel. Select down arrow and hit record. Navigate to the Recordings tab. Select first show set to record to watch. Now to switch to the other show you have to hit back, then arrow to other show, then select to watch, and say resume. So its 3-4 clicks to navigate back and forth between them but if I wanted to watch two shows and miss nothing this is the only way to do it today in Channels. If I needed to do this all the time then it might be an issue, but this isn't really something I do a lot.