I am not sure about "nose-dove", Chris, but where I come from it was no more "correct" to say "I dived into the water" than it was to say "I drived down the wrong side of the street". It's like British spelling eccentricities: "kerb" is no more nor less "correct" than "curb", but in the US, at least by Americans who are decent spellers, it will get you looked at funny.
And if your argument for "short-LYVED" were watertight, you'd say "I LYVED in Virginia much of my life." And how do you say "livery"?
These are matters of custom, not "rightness vs. wrongness", and customs vary from place to place and time to time. In Seattle in the early 1960s one dove. (Btw, how do you feel about "strove mightily" vs. "strived mightily"; again, both are "correct", but my impression is the -ove variant is doing better where striving is concerned than with diving, though of course as noted above not nearly as well as with driving, where I'm pretty sure -ove is the "standard", "correct" version everywhere. (Everywhere English is spoke, that is.
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