Right now my standard rating is 2035, and it seems pretty solid since I have completed over 600 games. However, my live Blitz rating is stuck in the low 1600's, and I have played over 1000 games in Blitz. I was wondering if any other users were experiencing this discrepancy in their two ratings, or if my Blitz game just needs a ton of work.

That's how every one's ratings are -- different pool of players makes for different rating.  Seems like most beginners that flood CC don't play live.

Some people think differently, they are just better at making quick decisions or fast calculation or quick pattern recognition. Other's prefer to take it slow and think things through more slowly, and others are a mix of both.

I've noticed the competition is getting tougher in live blitz. I used to be able to maintain an 1800 rating, where now I struggle to stay in the 1700s. I'll lose to a couple of 1600s and then beat an 1800. Go figure.

The correlation between blitz skill and standard skill is not very strict. I almost always play blitz and thus spot tactics and see ideas quickly. However, when it comes to deep calculation, I often make elementary mistakes. For this reason, I am better than most B and some A class OTB players at blitz, but doubt I even an A class player OTB.

I think you got it backwards.  Your standard is 1600 and your bullet is 2000+

The bullet pool has always been weaker, and so it's easier to get a comparatively higher rating.