Scared by the rumors, huh.
I wonder how many people here have ever seen Caulerpa do this? It will be rare to find someone.
Since my first RDP Refugium in 1996, I have always grown Caulerpa. When Chaetomorpha was brought to the hobby about 1999, I found benefits to growing both. As you pointed out, herbivorous fishes like Caulerpa. It also looks attractive. Unfortunately, it usually does not grow fast enough to meet the needs, so most hobbyists supplement feed Nori and Romaine lettuce instead, using Emerald Entree as their main frozen food.
I can remember only a few times seeing the dissolving of almost all the Caulerpa in an entire tank, but the one time it happened to me, it did not crash the tank possibly because of the way I utilize biological filtration. Some of it actually survived and soon grew again. But I see how some people run their tanks and understand why the total dissolution of Caulerpa would do them in.
There are many kinds of Macroalgae that can be utilized in your Refugium. I once had a beautiful growth of blue Dictyota in a Refugium and have always loved and tried to grow the more difficult red algae. Sargassum is very cool as well. If you want to see pics of different marine algae, go here: http://www.utahreefs.com/forum/forum_posts.asp?TID=9244 - http://www.utahreefs.com/forum/forum_posts.asp?TID=9244 The link is in the text or go to the Tips and How to's section under the title "Beautiful Algae, the good and the bad."
Hope this helps. 
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