I think you've covered what all I'd say! :)
This is what they look like not all stretched out (usually they hide in the rocks and stretch out...so this is an unusual shot). I have a video of it somewhere...it's crazy to watch!
I don't recommend them in seahorse tanks, but I've never had an issue with them in a reef tank (granted, I still don't like them and don't have any currently). If you don't like them, you can put a dab of superglue, kalk-paste, or epoxy over their hole when they retract.