@Futuretotm
Nice to see a local on here.

I'm in Lakeland.....
Yes.... You're pretty much correct. It can get much more complicated than that, and there are many pieces of this puzzle, but it sounds like you pretty much got it.
What left the scientists scratching their heads, early on, was the fact that they could drift around in the open ocean for days, weeks, or months, and see very little, if any, signs of life. Then drift over a sea mount and see an explosion of life just below the surface. Fish of all sizes and shapes and colors. Coral and sea anemones flourishing. Then they could drift a few more yards and be right back in a sea of nothingness. It didn't make sense. How could a seemingly sterile, oceanic desert, give rise to such an abundance and diversity of life???
There was one evolutionary leap that made all of this possible. That was when a zooxanthellae took up residence inside a coral. Before this, coral could not survive in these areas. Without coral, not much else could survive either. Corals couldn't survive because there isn't enough energy/nutrition in the water to support them. Algae cells, like zooxanthellae, couldn't survive in large numbers because there isn't enough dissolved fertilizers, like nitrogen and phosphorus, in the water to sustain them. When these two teamed up, everything changed. A healthy coral could now receive energy, nutrition, sugars, carbohydrates, directly from it's zooxanthellae. This meant that the coral could now survive where these resources, from the surrounding environment, were not in great supply. The zooxanthellae could now obtain its fertilizer (nitrogen and phosphorus) from the waste of it's coral host. The zooxanthellae were no longer dependent on the insignificant amount of fertilizer dissolved in the open ocean. Through this tight sharing and recycling of nutrients, together they could flourish, where alone they have no chance.
Once you have life like this in an area, it typically gives rise to other forms of life that utilize this life for it's own organic food, shelter, and survival. Microbes feed on coral slime. Other tiny creatures feed on these microbes. Larger creatures feed on these creatures. Others may feed on the coral itself. Still larger creatures feed on these creatures. Before long, we have what we now call coral reefs with their huge diversity of life. Even though there isn't enough nutritional input to sustain it alone. All of these animals play a role in sharing and recycling the precious few nutrients they have. "Poop", plays a huge role in all of this. One organism's waste is another organism's feast. A grouper may feed on a parrot fish, then poop. Other fish may feed on this grouper poop, then poop themselves. Still smaller fish may feed on this poop, and poop themselves. Then a coral polyp may feed on this poop. A parrot fish may then feed on this coral polyp, then be eaten by a grouper, and the process continues. Through this process, these organisms can trap and recycle the same nutrients over and over and over and over again on the coral reef. This, and other factors, leaves the whole community with very little dependence on nutritional input from outside sources, or nutrients dissolved in the open water. The whole system can survive and flourish even though they live in very nutrient poor waters. In fact, they depend on living in these nutrient poor waters. When nutrients in the water rise, the whole system is disrupted, and coral reefs die.
This is why I am firmly against the notion of maintaining X amount of, or dosing, inorganic nitrogen and phosphorus into the water of a system that's dedicated to keeping SPS/ reef building stony corals. None of the links, or quotes, in this thread, or any other thread, and none of the countless research papers I've read, show that these corals are dependent on inorganics like N and P in the open water. Not one. These animals are dependent on N and P, just like the rest of us animals on the planet. However, that does not imply that these healthy corals are receiving these nutrients through inorganic dissolved substances in the water. They live in an environment where these resources are scarce to say the least, and where one tiny organic particle, or organism, captured as food, will have a concentration of nutrients that far exceed the water around it. A healthy coral on a coral reef would have to process vast quantities of water to equal the nutritional value of one tiny little copepod. These corals rely on their zooxanthellae for the vast majority of their energy requirements, and feeding on organic particles for the vast majority of their nutrition requirements for growth and reproduction. We have all kinds of literature to show that these corals suffer when N and P are elevated in the water, but nothing to show that these corals are adversely effected when they are low, or undetectable with our test kits. Providing the corals are fed well.
Peace
EC