If the system is going to be fish-only then a wet/dry setup with traditional bioballs would be fine. If the system will be a reef (or will likely be converted to one in the near future) then, personally, I would set it up with live rock in the display and a good skimmer in the sump (ie. no wet/dry, no bioballs). Actually, I prefer the latter setup even for a FO tank myself.
As for using live rock rubble in place of bioballs in a wet/dry setup, although it might give some benefit in the form of denitrification, personally I would avoid this type of setup. IME it's best to have live rock in the display where it can be periodically flushed with a powerhead to remove detritus build-up. I prefer to keep the sump devoid of rock or sand as it's far easier to clean out any settled detritus this way. IMO avoiding setups/situations where detritus can build-up makes it far easier to maintain water quality over the long term.