A potting mix has to do four main things; be weighty enough to hold a plant upright; have sufficient oxygen (air filled porosity) to maintain root metabolism straight after watering; it must be chemically inert, and it must not decompose within three to four years (freeze damage). That's all it has to do. Of these factors, air filled porosity is the most important.
Air filled porosity is the thing that is most important for a good potting mix, water holding ability comes afterwards. The reason is that you can always add more water, but it's very difficult to remove it once it's in the pot.
Porous media like perlite, pumice and expanded fired clays are good components as they have micro-porosity which will take up and hold water, and because the pores are large enough for roots to enter, make that water available. (Also they keep available water at the top of the pot, which non porous materials, like crushed rock, or grit, are not good at). That is, they increase the available water of the potting mix without reducing air filled porosity. However, it is the particle size which determines the air filled porosity. Pumice, perlite, lava, or anything else for that matter, with small particle size will have a low air filled porosity and cause poor plant growth.
Air filled porosity, which is dependent on particle size and pot depth, really is the most important aspect of mix design.
This following article gives a good explanation and method for testing your mixes at home.
http://www.google.com.au/url?sa=t&r...uDdgLxFJI9mkeL_0N-7h37g&bvm=bv.57155469,d.dGI
Sorry for the rant, but this is really getting up my nose. Some potting mix components are better than others, sure, but in the end it's the AFP that is most important.
Paul