This experiment was conducted and reported in a book by Hoff, Conditioning and rearing of marine fish with an emphasis on clownfish, or somethign close to that.
They found it did make a marked difference to time to settlement.
I have been using it for a while and it definitely seems to improve the survivability of the larvae. This is just personal experience but I once split a hatch of A. percula and in one tank I added iodine and didn't in the other. The one without had a 50% die off where as the other had a 90% survivability. I only did this once and that was enough for me to stick with adding iodine to the larval tanks.
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