Xenia will definitely help filter the water. How to implement as a form of filtration is a matter of having a dedicated refugium that is large enough to have a good amount of xenia, and some sort of way to keep it from getting into the main display.
I have a 10 gallon setup with mushrooms, zoas, clove polyps, ricordea, and lots of xenia. The only filtration I use on the tank is a HOB AC70 with chemipure elite and a bag of purigen. I never test the water and rarely do water changes. I have zero algae issues and everything grows well. I attribute this to the amount of xenia in the tank.
[video=youtube;i83TDuOozP0]http://www.youtube.com/watch?v=i83TDuOozP0[/video]