That's a different species than what I have; mine are the orange ones that multiply like crazy and then the population dies off. They're considered undesirable because they will coat your live rock and other things because they become so populous. Then, a couple of weeks later, the population dies down and the cycle starts all over again.
I believe they eat "detritus", all the crud that falls from your fish and water column. In that respect, they're GOOD to have!
There is a nudibranch that eats those, and mandarin fish are known to eat those too.. but some people state they had no luck with them eating flat worms. In the marine atlas 1 by baensch, they state mandarin fish and some brittle star will eat them.
FFE have some at the moment for sale in the collection corner.... I know that by the time you read that message they might not have any for sale anymore.. anyways.. here is the adress: http://www.ffexpress.com/cc.htm