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When my Jeep isn't in DFCO, it actually coasts better in D than N, (mostly from about 20 - 35 mph). It will sustain 15mph in 2nd, or 20 in 3rd (engine idling) indefinitely on flat ground, as the huge engine can push it enough at idle to keep it going.
DFCO is best used to keep from gaining too much speed on long downhills, and to drop speed coming off highways, as you expected.
DFCO is when the engine is still spinning (tranny in gear), but not supplying fuel. EOC is when you put it in Neutral and turn the engine off (most Auto trannies can be damaged by this, recommended for manual only).
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Call me crazy, but I actually try for mpg with this Jeep:
Typical driving: Back in Rochester for school, driving is 60 - 70% city
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