Activated charcoal in toothpaste/powder may help remove surface stains on your teeth. Activated charcoal is different from regular charcoal as it has been processed differently so that is has more actual activity. Charcoal is mildly abrasive and is also able to absorb surface stains to some degree. There is no evidence, though, that it has any effect on stains below a tooth's enamel, or that it has a natural whitening effect.
Yep, from what I've heard you're basically just exfoliating your teeth but they don't really grow back. I wonder if there's been any long term study of the effects (10+ years)