You know...Eunicid worms get as bad a reputation as mantis shrimps. One guy pulls a seven footer out of his scaffold plumbing and suddenly EVERY eunicid worm is "bad and must be removed". That's oversimplification/generalization.
I think you removed and killed a beneficial scavenger. That's my opinion, but it is based on the personal experience of keeping many, many of that exact species in my reef tank without incident.
I don't yet know how large that particular species (red/brown - with the white neck ring) gets. My largest is not quite 2 feet, but doesn't seem to be getting any bigger in nearly a year.
The largest one that have is a different species again. (photo in my gallery). This one has recently moved and now lives directly under a large leather coral. It has shown no interest in feeding on the coral, and is much more interested in macroalgae.
Like many critters, if they get hungry enough, I would bet that they attempt to eat anything they can. Make sure there is something there for them to eat and they don't go out of their way to eat things you would prefer to be left alone.
Now..if you just don't like them because they make you go "Eeeewww", it's your garden to decorate as you please. But if you want a balanced ecosystem, you need to have a healthy balance of the critters that aren't necessarily pretty.
I think we need to be careful answering the "good/bad" question. Of course, there is almost never a clear cut answer to that question. I think it should always be answered with "I have personal experience with that critter and it behaves as follows..."[/quote]