This has been a controversial subject.
Depending upon your usage of bio-balls they are not bad for a reef tank.
The reason bio-balls have a bad rap is because people are accustomed to using them the way they were originally designed to be used, in a wet/dry sump. When they are in the 'dry' section of a wet/dry, they collect detritus and contribute to the nitrite, nitrate, phosphate build up, because they are above the waterline.
If you use the bio-balls the same way you would use live rock, submerged, then they will provide you with a large amount of surface area and basically perform the exact same way LR would perform, as a place for bacteria to colonize.
So once again, it depends upon your intended use for them.
swimmer