You're not going to see many pods in the display because the fish eat them. Any pod that shows itself is quickly consumed. I have 3 small fish in about 80gl of water and about 90% of their food comes from the pods that live in the fuge. 100% for the Mandarin. In the other system, occasionally I will see a large pod that survived the trip into the heavily fish stocked display, and it never makes it to the rocks. For several years I ran a 55gl display with two 30gl fuges. The only fish were two clowns and I never fed them. They lived on pods alone. In most cases a fuge won't support a large healthy fish population on its own, but it does supply a good source of very nutritious food on occasion.
Like Hop said, Cheato is just one form of
macro algae. You can try it in the display, but it's not a good idea
in most cases. Either the fish eat it or it overgrows everything in the tank.