There have been studies done on Xenia feeding and it seems they aren't too particular about the type of food they ingest, zooplankton and phytoplankton were both found. "Plankton" refers to the size of the food, not what species of food, so again, it seems to boil down to size selection. I wouldn't worry about target feeding xenia or any of the branching softies, except for non-photosynthetics like gorgonians.
Have you ever looked at the "feathers" on a large feather duster? I know it's not a coral but food selection is also based on size. A particle of food hits the cilia, they grab onto and then it travels down the center track of the "feather." If the food is too large, it gets bounced out, kinda like a marble on a track that is too small.
Alice