Could someone please explain the importance of enough live rock
You don't need any at all.
There is no importance.
Its not going to change much of anything in any aspect.
Most tanks have enough of a sandbed or surface area for bacteria to grow to sustain a tank.
OLD school chain of thought was to have enough liverock to provide biological filtration, it never worked well for the average reefer. A deep sand bed worked better.
Technically, you don't need any LR. Yes, nitrifying bacteria will colonize all surfaces and other forms of media can be substituted. And a deep sand bed will do the trick as well, but it sure isn't for everyone & has its own special risks & rewards for specialized needs. If you can sustain the proper bacterial species in the correct quantities for a given bio load easily & reliably, all will be well. It seems that some of those crazy tanks on the TV shows don't use LR but that's another story.
But why would you want to go this route? It's not good advice for most aquarists. Especially those starting out. Sentences 2,3,4 & 5 are pretty far out there IMO.
IN DEFENCE & PRAISE OF LIVE ROCK:
-The typical aquascape provides an incredibly huge total surface area for bacteria; far more than could be achieved easily with other methods.
-The interior of good fluffy live rock is superior for habitat for anerobic bacteria, the key to low nitrate levels.
-The habitat LR provides is excellent for sustaining microfauna which provides interest, food & detritus control.
-Live rock provides essential hiding & sleeping spaces for fish & inverts. Many could not survive without it due to stress & predation.
-Live rock is where most corals live & grow. No live rock no reef keeping hobby!
-Use of LR in some fashion will usually give the most pleasing look.
There's just no downside to LR. When Mr Eng "discovered" live rock 40+ years ago really is what made the hobby possible for most people. I can only think of a precious few examples where an aquarist woukd not want LR...maybe some special FO tanks, jellyfish, cuttlefish tanks or something exotic like that. QT tanks - OK. But as an average reefer, I can tell you live rock is vital in a mainstream reef tank.