I don't think I'd crush it. Live rock is dead coral usually anyway.
Crushing it would make it... well, crushed coral which generally traps detritus really bad. I just put all of my dead stony corals in my sump to become live rock.
You might be better off breaking it into small chinks and using any that are good for fragging. Frags always look better on rock or dead coral rather than a disk or plug
In theory, I think it would help buffer the pH in the water some, if you add it in somewhere, and the smaller, the more effective it is. Using it for plugs is cool, just leave it in your sump regularly until you need to cut a piece off.
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