The filtration takes place in a different place, that is all. Your sand bed, your rocks, the sides of the tank. Just because theres no physical sponge in the aquarium, doesnt mean the bacteria is gone too. a 10g tank, with a 1" sand bed has more than enough surface area to support a fully stocked aquarium. All you need is good O2 levels in the water (water circulation and surface agitation) and you're set.
this approach to biological filtration has been used for decades in the saltwater side of the hobby. I'm really not too sure as why it hasnt caught on in the freshwater side.
I was trying to get that point across and meant to say it, but forgot to come back and post that. I have a saltwater reeftank - 20g tank, 40 lbs live rock, 20 lbs live sand. The only filtration is water movement. I think the idea has not caught on in freshwater because we overstock. In general, tanks can be overstocked fresh and with water changes and extra filtration the problems can be lessened, but with salt it's very difficult to overstock and have success, thus the allowance of live sand and rock to do the filtering.
If having a filter makes you sleep better at night, throw one on, but understand you don't need it with a properly stocked tank and proper water movement. Now, on to heaters and whether they're necessary :evil_lol: