Yes, bio balls are an effective means of nitrite to nitrate, however live rock is a more natural and stable means of completing the cycle.
With bio balls, there is less of the balanced cycle happening in the live rock.
So long as nothing happens to the bio balls or wet/dry, then there should be no difference. However, if something happens to the bio balls (which are less stable of an environment) then the live rock will not be able to handle the extra load, and the biological cycle will fail and have to start over.
However, with sufficient live rock in the system (either in the display tank, fuge, or even in the sump) it should handle the cycle more naturally.
A large danger lies in prefilter pads used either with or without bio balls. They must be cleaned regularly, at least weekly, to prevent them from taking on part of the bio load. Or else, when they do get cleaned, they will then send the cycle out of balance.
Filter pads are a good thing for removing solid waste, but must be cleaned often.
My 2cents
mame
PS if you're switching from wet/dry to a simple sump, the safest method is to remove the balls slowly over the course of a few months. This lets the LR adjust to the new bio load at a reasonable pace.