Microsoft has caused a great deal of confusion with Hotmail, Live Hotmail, Windows Mail and now Windows Live Mail. Windows Mail has indeed been replaced by Windows Live Mail and support for Windows Mail has been discontinued - have a look at this article, it may explain it in a bit more depth and offer alternatives if you are seeking them.
You mention the extra toolbar options. I don't have any of these. Perhaps it is something that is included when you download Windows Live Mail with Internet Explorer or perhaps there were options not to install them - can't remember now. I use Firefox.