As a commercial producer, bare bottom is the only way to go because of the high densities and number of tanks to care for. Also allows in tank treatment. Panacur for example used in liquid form in such a system can be removed with charcoal and protein skimmer and the snails could go back in. If you have sand and rock, then residual amounts are left behind.
For a display tank with larger seahorses and light stocking density, I would prefer sand and a more natural type setup. H. zosterae tanks however, are a high maintenance tanks. I prefer bare on them. My current zosterae tank is a 65 gal round fiberglass tank on a sump. It has plastic plants for hitches and live mysids in with them. We siphon it daily with a brush and scrub it once a week. Plastic plants get sterilized once a month in bleach. Other than that, we had enriched artemia a few times a day and then turn up the flow a bit at night to wash out the artemia. This setup has been running for about 5 years now mostly problem free. The zosterae reproduce heavily and we can pull anywhere from 100 to 200 out per month.
Dan