According to the Oxford English Dictionary, many do, although that fact, in itself, suggests that this pronunciation may be more common outside North America.
Historically, words like “life” and “wife”, whose plural form includes the change /f/->/v/, also are the vestiges of a certain class of native English nouns which, through the early ME period, also had /f/->/v/ in the oblique cases of the singular. So for lyf (“life”) you had:
[ul]
[li]*Singular nominative: *lyf[/li][li]*Singular accusative & dative: *lyve[/li][li]*Singular possessive or genitive *lyves[sup]1[/sup][/li][li]*Plural, all cases: *lyves[/li][/ul]
An example of lyve being used this way in the singular:
And, good Brothyr, fayle me nat now in my gret necessyte, for y had nevyr so mych nede therof in my lyve[sup]2[/sup]
Not long after this time the paradigm had changed into what we have today.
[ul]
[li]*Singular, all cases: *lyfe[/li][li]*Plural, all cases: *lyves[/li][/ul]
And the point of all this is that there actually was a lengthy historical precedence of the “long i” in non-plural manifestations of “life”.
This was just about the time when the singular dative as a distinctly inflected form disappeared anyway, so we don’t find it in all dialects. But it does help explain why the “i” is /ai/ in “alive”, among other things, and why some people do pronounce the “i” as /ai/ in “long-lived”.
I was intrigued to read here, a couple of years ago, a post in which somebody said the jewelry store had lost his wives ring. This was likely caused by a moment of carelessness or distraction, but hey, maybe it’s the last ever attestable occurrence of wives to indicate the singular possessive.
[sup]1[/sup]At this time writers had not yet begun to use the apostrophe in spelling plurals. That was a better time for all.
[sup]2[/sup]From the online corpus of Middle English prose and verse of the University of Michigan. Link.