I recommend live rock simply because it's a great biological filter. You don't need metal halides to grow the purple encrusting
coralline algae. The coralline algae can grow under regular flourescents and seems to grow better under 50/50 full spectrum/actinic (blue) lighting. I wouldn't keep more than two clowns in a 20 gallon and would not mix clown species.
I recommend a protein skimmer, especially if you're a beginner to saltwater. Once you see the the brown gunk (dissolved organics/proteins) they pull out of the water, you will probably always use them. They pull these organics out of the water before they have a chance to nitrify and contribute to problem algae blooms and nitrates.
In my opinion, sea horses need a species only tank with very slow water currents. They are also very slow eaters and would not be able to compete with fish at feeding time.