I have LPS and softies, but I think SPS benefit more from carbon and a fuge.
Each medium does something different, Bio-balls heavily oxygenate seawater, blowing off ammonia before it can convert to nitrites and nitrates. They do not remove color and odor. Suspended, granular activated carbon (GAC) does. An SPS system however, should have such a low bio-load (few fish, little food) that there is not a lot for bio-balls to blow-off.
Since you should have a mechanical filter somewhere (a micron sock is popular on SPS systems), you only have to replace the mechanical filter with GAC for a day or a night. I have a small hang-on-the-tank mechanical filter. I replace the fiber pad with a carbon grid (covered in a fiber pad) most weekends to reduce color and odors.
An algae refugium however, provides an isolated benthic zone for life forms tolerating low oxygen levels. These include macro and micro algae, worms, copepods and the minute animals upon which SPS feed. Isolating the benthic zone allows the aquarist to maintain a high-light, high water motion display tank with little or no ugly substrate.
The algae not only provide some of the same, slow bio-chemical transformations of the bio-balls, they also produce the skin conditioning colloids that gives healthy seawater its slippery feel. While it is documented that the colloids benefit fish, I know of no research indicating that colloids might also benefit the flesh of LPS corals, but I would not be surprised if they did. The success rate for SPS and LPS corals with an algae refugium is almost double (Tom Frakes, Aquarium Systems, 2000?)!