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Shifting in and out of gear doesn't harm much as long as the engine's running.
As far as measurable benefits, my ScanGauge shoots up ~20-30 mpg when neutral coasting with the engine on. And I coast further since the engine isn't slowing the rotation of the moving parts in the transmission. My engine RPM's during a coast with the transmission engaged are about 900-1000, vs. 650 at warm idle. Plus my old-school pushrod V6 doesn't have any sort of fuel cut, only a drop back to idle consumption.
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2012 Chevrolet Cruze Eco 6MT
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