To quote Eric Borneman directly:
"Iodine is anecdotally reported in the hobby and among some propagators to be important to these soft corals. Regular - if not daily- additions are reported as necessary for their health and growth. The actual iodine concentrations in the water are also said to be important, and readings should be taken with an iodine/iodide test kit for an ssessment of proper levels. Although some hobbyists report great success using Lugol's solution with Xenia, others have noted that the addition of this strong iodine product has caused the demise of entire colonies. The risk of such loss should be carefully weighed before using Lugol's solution with Xenia. I have not found iodine to play a role in the success of Xenia, nor is its need or uptake documented, though I have found it to be detrimental in some, but not all, of my experiences with these corals."
This is taken directly from his book "Aquarium Corals" which I have found to be an indispensable resource. So it sounds like the jury's still out but in his mind, at least, it may do more harm than good.
He also notes, as most of us already know and have already pointed out:
"Despite their hardiness in the wild, Xenia species ship poorly and are quite fragile (at least initially) in captivity. They are very prone to "crashes", in which an entire colony will stop pulsing, wilt, deflate and degenerate rapidly. This crash can occur in colonies that have been dividing and thriving for long periods of time. Without any noticeable changes in conditions, the colonies fail rapidly, almost as though they had exhausted some as-yet undiscovered factor in the water. Also they do have short lifespans on the reef, some only 1-2 years, but generally 3-7 years."
So this wilting behaviour can be expected in some of, if not most of, our captive colonies with time, according to his observations. Has anyone had any experience that would contradict this thinking? This has definitely been my experience with Xenia, which I have found to be anything but reliable.