Shutting off the engine while coasting with the engine off WILL eventually damage an automatic that isn't designed for it.
(As well, with the engine off, you lose power assist for the steering, and have a limited amount of vacuum in reserve for power assisted braking. That's another story, but probably worth repeating here.)
BUT: nobody said you have to shut off the engine to coast in neutral, and there are times where it will increase your fuel economy vs. coasting in gear.
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