I would also either fertilize to keep macroalgae density high.. or add more fish. You could source out nitrogen to add, along with some basic micronutrient mix and possibly phosphate if you intend to keep bioload low, or feedings small. If you go this route I would recommend some of Seachem's Fluorish line made for freshwater planted aquariums.. I'm using these with success in place of mixing up my own stuff. Err on the side of dosing nitrogen and micronutrients though, particularly iron with macroalgae since we have some anecdotal evidence that they tend to go to zoospore stage less often if given enough iron.
Testing nitrates at zero could be both good and bad. In a tank full of thriving macroalgae a nitrate test of zero would indicate more that the amount of nitrogen being produced is about equal to what the macroalgae require to grow. In a tank of declining macroalgae.. like yours.. a zero reading for nitrogen (ammonia, trite and trate) would indicate more that you simply dont have enough to fuel the macroalgae's growth and survival. Shoot for a NO3 reading of about 5-10ppm.. that's what I'm holding mine at as this should be low enough for most fish to put up with. In freshwater people recommend from 10-20ppm.
Oh.. and I am inclined to agree with you that your DSB.. as a 6" sandbed without seagrass would effectively become.. could easily be competing with your plants/algae for nitrogen sources. Just as I think that live rock in the average reef system competes for nitrogen sources.
>Sarah