"bubbles force water up the tube and circulates it. Is that correct? " For practical purposes, yes. I think the actual physics is that the water column is sucked up the tube.
"Does it move enough water to justify putting that big piece of pvc in the tank ? "
Air lifts can move a lot of water. Here are some reasonable flow rates for un-restricted (in the tank with no plumbing) 2' and 4' lifts:
1" pipe
1.0CFM 1.5CFM 2.0CFM
24" 8GPM 10GPM 13GPM
48" 21GPM 24GPM 28GPM
1.5" pipe
1.0CFM 1.5CFM 2.0CFM
24" 16GPM 17GPM 18GPM
48" 36GPM 36GPM 42GPM
2" Pipe
1.0CFM 1.5CFM 2.0CFM
24" 20GPM 24GPM 30GPM
48" 42GPM 48GPM 61GPM
(source: old ACS catalog)
Now, if you plumb the lift external, like I did, plumbing resistance knocks the flow down a lot. For instance, my lift is 4' tall and has a 1.5" diameter and I inject about 1.5 CFM of air. My flow is 20 GPM, plumbed external, while the chart value is 36 GPM. I'm fairly certain I could get the chart value if the lift was internal to the tank.
"do you need a huge airpump to make it work? "
I use a Medo AC602 which injects 1.5 CFM of air at 4' of head. As a comparison, most hobby pumps put out less than 0.25 CFM at no head. The actual pump, however, only measures something like 7"X4"X5" and consumes around 45W. There are a few of us snatching these up off eBAy for around $35, each. I have 2. New from a Medo distributor, I think they are over $200.
You could probably build a decent 2'X1" air lift and power it with a TetraTec DW96-2 (or similar) and move a lot of water.
Aquatic Eco-system catalog are excellent for air-lift projects because their pumps are thoroughly rated and they have all the special air doodads you can't get from hobby vendors.
"What about salt spray? " IMO, it would be terrible. My lift is entirely enclosed into a vented collection tank for just this reason.
"Of course mine were built out of garbage cans with toilet flappers "
Well, to imagine an RCSD, think about that garbage can turned upside down and push under the water's surface. So, you've now got a few gallons of air pushed under the water, and the tank's water level is pushed up because of this. Now, imagine that you've installed a 1" valve in the base of the garbage can. You open the valve and all the air vents out in a fraction of second, replaced by water rushing in. The in-rush of water is the surge. To get the water back out, you close the valve and pump air in. That's basically how it works, except that the "valve" is a specially shaped pipe vent and operates with no moving parts.
If you JUST want to move a lot of water efficiently, I'd use one of those ReefTecs pump mods or new Tunze pumps. The Tunze moves something like 3000GPH at 40W, and has infinately adjustable speeds because it is 28VDC instead of AC. The Tunze also can be bought with a cycle controller, speed controller, and a whole bunch of other super-whamadine features. It's pretty amazing (including it's cost).