The amounts of dissolved CO2 and O2 are independent of each other, meaning one or both could be high or low. CO2 does not displace oxygen. Fish run into problems when CO2 is high relative to the levels of O2 available. Not commenting on this particular situation but gouramis are a labyrinth fish meaning they breathe air, typical behaviour would be for them to be top dwelling fish and gulp air. Since they do possess the labyrinth organ, I would expect them to be the last fish in an aquarium to be stressed due to low O2 levels.
CO2's effect on algae is more due to the strong healthy growth it promotes in plants, then any direct effect. I don't know why this works but it does. Even with plenty of excess nutrients (like those available when one uses EI), algae will diminish in the presence of lots of healthy plants. Starve your plants, limit available nutrients and your tank will soon be overrun with algae.
And not to be argumentative but most fish, and plants would be better off, if everybody lost their pH test kits and never replaced them.