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Keeping the engine in neutral and coasting is fine for an automatic tranny. It will cause a little added wear since you are shifting more, but not that much. Just think how often you shift in city driving. Dropping into neutral here and there is not going to cause a ton more shifting.
The only concern with the flat tow issue is engine off coasting because auto trannies usually use pumps powered by the engine to keep them lubricated. Your doesn't have this reliance, so you should be fine (up to 65 mph).
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