I've had a mag based powerhead fall off of its base and point directly at a coral unnoticed for maybe 12 hours and lost half an SPS colony to the direct blasting flow from a powerhead. Yes, polyps will not be extended during a flow storm, and during that turbulent time your corals are not going to be feeding on any food particulates present in the water column.
(Another clue that your flow is to high is when you swim a fish to death.)
I don't think corals have a set "perfect" flow speed, but there certainly is a range of optimal flow for O2 and nutrient exchange, but that range is probably species oriented.
Many people try to set up their tanks so that the water motion is random and the speed is variable to mimic what happens on reefs that experience tides, currents, storms and the changing water flow that those events produce.