crushed walnut shells may pass, but often they can rip up the intestines, sometimes to the point that it can lead to the death of an animal.
The reason people say calcium sand causes impactions is because it does, plain and simple. Instead of digesting like they claim, it actually builds up after a while and forms sort of a rock of calcium that eventually blocks the intestines. Normal sand can pass little bits at a time, because it doesn't stick together, but a lot of it sticks to the intestinal walls, and can cause a chronic impaction.
My vet has advised me that of all the common reptile pets, leos should be the ones that I definately do not put on sand. From his observations, it seems as though when put on sand, and especially calcium sand, a good percentage of leos end up with impactions, sometimes in a very short time period. He said that with what he's seen with leos, and also bearded dragons, he doesn't keep his animals on sand (which really does make sense, since the areas they come from don't have loose sand like many seem to think). He also said he can't advise anyone that housing these reptiles on sand is in any way safe for them.
Some people will keep leos on sand and other such substrates and never have a problem...and that is honestly just luck. Leopard geckos come from a rocky terrain and generally stay out of loose sand. Bearded dragons also try to stear clear of loose sand...it makes it harder to run if a predator happens to come by.
Also, with the crushed walnut shells...I remember somewhere there was a good article explaining them, maybe melissa kaplan wrote it...I can't remember. Basically they were first used with birds, but bird owners realized they were no good and stopped buying them (I think it's because they grow mold or something), so a little while after, the same companies repackaged the crushed walnut shells, but with a label promoting using them with reptiles.
I currently keep a bearded dragon and a mali uromstyx, and I hope to soon aquire a leopard gecko. I keep the bearded dragon on rubber non-adhesive shelfliner right now (though I may switch to something different, like a dirt mixture and/or slate tiles when I finish the new cages), and the uromastyx is being kept on a shallow layer of dirt, with sort of a fake burrow. When I do get the leo, I plan on using either shelf liner or reptile carpet. I may opt to use slate tiles though, which are usually a good, fairly natural alternative.
By the way, this post was partly opinion, but based on facts. I'm not try to belittle anyone out there for using sand substrates...I just want people to understand that some of these products are just plain bad. If you do choose to use them, make sure you only use them on adult leos, and try to feed them from a bowl or seperate container.