Eric
Awesome write up! I'm bookmarking this one.
In terms of DSB's and the subject at hand, here's my take on it:
The current in our tanks is usually pretty dismal relative to the flow on an actual reef. In fact, the flow required to mimic a real reef crest would blow a fine particle size DSB out of the water. It's also accepted in this thread that our DSB's mimic the dynamics and meiofauna of a seagrass/mangrove habitat. So, along with the low flow, aren't we basically trying to keep corals in a microcosm that overall more closely mimics a mangrove habitat? Furthermore, isn't there a reason that many types of corals we like to keep do not occur in those habitats? And lastly, is it really so surprising that our tanks with DSB's and low flow begin to look like a mangrove habitat(without the mangroves) after 4-5 years?

The various algae communities have a greater competitive advantage over corals in these muddy areas due to a greater presence of nutrients which are usually limited in a reef community.
Eric, you make a great point about corals being efficient predators as well. I never thought about that. We worry so much about the effect on microcrustacean communities after adding a mandarin, yet don't think twice when adding a euphyllia. I will keep that in mind with my new tank.
I remember talking with Adey about the presence of predators in an aquarium. We both agreed that if the goal is to have a long term diverse tank, predators are a tricky equation. At the density that we keep corals and other predators, refugiums do nothing more than act as a food source. Refugiums don't seem to serve as source for critters to repopulate the main display, when the main display is full of predators. So, even in the presence of a fuge, we lose the significant roles these critters serve in a ecosystem. After all, they do more than just act as a food source.
On a side note, a few years ago I helped my brother set up a reef system. He loved watching mine so much, he wanted one of his own. We set it up with only a tang. After just a year, his tank was extraordinary to look at. The tang obviously prevented the opopportunityor some types of algae to prevail, but the diversity of critters, sponges, and other algae was impressive.