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In Virginia the law against coasting in neutral goes back to the 1930's when Plymouth came out with a freewheeling option. It was a one way clutch that allowed you to coast without having the engine and transmission engaged to the propshaft and differential.
The problem was in the mountains you could not disengage the freewheeling option unless you had come to a complete stop. This meant on long downhill grades the marginal brakes of the period could overheat easily and you were doomed.
Most hybrids, especially the Prius under certain circumstances have the wheels disengaged from the engine and motor, so it would seem like it would be very hard to convict anyone of violating the anti freewheeling law, if another car does it automatically.
Modern brakes also make the likelihood of loosing your brakes on long downgrades very slim.
regards
Mech
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