Not everything can use nitrate as a source for nitrogen. There is plenty of evidence and Lasse has given plenty more that microalgae cannot use it at all - for our purposes think Zoox. Some hosts can convert nitrate for their zoox to use, but at a cost of 30-70% that nobody really knows for sure. Some hosts cannot convert nitrate at all. Those hosts need to get their nitrogen from ammonia/ammonium, bacteria caught in slime coat or if the can effciiently catch any food. I mostly keep acropora and it does not appear that they can efficiently catch foods in our tanks, but that they can/do capture bacteria in the slime coat and use ammonia. When you follow the Venn Diagram, you kinda see that nitrate is mostly useless for corals. Nitrate can use used directly by macroalgae - all kinds, at least from what I have seen.
If the best that you can hope for is that some corals can convert nitrate at a large cost of energy, then what good is it? You are better off feeding the fish more or even dosing ammonia/ammonium. I just don't see the point of having nitrate of more than a trace or other low number. I guess that if you are trying to poison dinos/diatoms/cyano, then higher residual levels of nitrate can do this.