I've heard people talk about this before as well. After doing this for 10,000 miles, i have yet to see any side effects. I do a LOT of Engine off Coasting with the clutch pulled in, and the only thing i have noticed is the clutch cable slowly stretching... but thats normal, i simply make the adjustments for it.
I will say that there is definately still friction on the drive gears even when the clutch is pulled in. You notice it more with a motorcycle because its much lighter than a car.
DCB, do you have any more information about what matsuzawa did? I'd been looking into ways in moving my nuetral gear between 5th and 6th on my ninja, but this sounds easier?
By the way: Congrats on your recent 100mpg tank
