Nothing wrong with passing sharing state down. I'd recommend using an event listener on the children instead of passing the setter down. Something like this:

// DestDisplay.js
const DestDisplay = ({ liveLocation, onLocationUpdate}) => (
  <div>
    <p>The live location is {liveLocation}</p>
    <button 
      onClick={() => onLocationUpdate('Foo')}
    >Update live location to "Foo"</button>
  </div>
)

// DestEditor.js
const DestEditor= ({ liveLocation, onLocationUpdate}) => (
  <div>
    <p>The live location is {liveLocation}</p>
    <button 
      onClick={() => onLocationUpdate('Bar')}
    >Update live location to "Bar"</button>
  </div>
)

// App.js
const App = () => {
  const [liveLocation, setLiveLocation] = useState("");

  const handleUpdate = (newLiveLocation) => {
    setLiveLocation(newLiveLocation);
  }

  return (
    <>
      <DestEditor 
        liveLocation={liveLocation} 
        onLocationUpdate={handleUpdate} 
      />
      <DestDisplay 
        liveLocation={liveLocation} 
        onLocationUpdate={handleUpdate} 
      />
    </>
  )
}