I couldn't make it all the way through this 12 page thread. Too many posts were just arguments, insults, and repeated claims. As you can see this is a touchy subject, and lots of people argue about the pros and cons. In my opinion growing macroalgae (like chaetomorpha) in a refugium is a much safer fix for nitrate and phosphate reduction, in conjunction with occasional water changes of course. As more and more of the nitrates and phosphates are used to grow the macroalgae, you just take the macroalgae out and throw it away (or give it to another coral reefer who wants to start a refugium!).
Growing macroalgae or performing water changes are good animal husbandry techniques because they really don't have a down side. Dosing with sugar or vodka does have a down side: as some people point out in this thread, too much sugar can cause bacterial blooms that can crash your tank. A algal refugium will lower nitrates to near zero, but you can always tell that you still have small levels of nitrates because if you didn't, you wouldn't have to occasionally scrape phytoplankton off your aquarium glass. Your nitrate test kit reads zero because as soon as nitrates are produced, they are converted into algal biomass. Bacterial blooms can cause even the trace amounts of nitrates to drop, and then how would your coral produce proteins? They wouldn't, they'd die!
The comment that bacteria incorporate nitrates into their biomass is misleading. Anaerobic (oxygen deprived) bacteria convert the nitrates to nitrogen gas, which is then exported when nitrogen bubbles form and are released into the atmosphere. You'll see these bubbles at the bottom of your deep sand bed, if you have one. The deepest layers of the sand bed, as well as the innermost crevices of your live rock, don't get enough water and oxygen circulation, and these areas house the anaerobic bacteria.
So if you've got high nitrates in your tank, perhaps you don't have enough live rock. Of course, animals produce nitrates from the nitrogen that is in protein, and if you're feeding your critters way too much food, then they are producing way too many nitrates. (to be more accurate, your invertebrates produce ammonia, and your marine fish produce ammonia and urea... but both are converted to nitrites and then to nitrates by aerobic bacteria).
If you're wondering why you should be concerned about nitrates and phosphates, well, they act as fertilizer for growing algae. And not just the macroalgae you're growing in your refugium. If you've got a hair algae problem, it's probably because the hair algae is being stimulated to grow by these fertilizers! And hair algae can overgrow your coral, causing death and destruction! So if you have a wad of chaetomorpha already established in your refugium, then it will keep your nitrates down and not let hair algae get started.
Sounds like we could add this to a discuss at the next meeting!