This always ends up in a huge debate.. lol. Just depends on what you were taught.
It's not bad for the car, nope. Be advised that this practice is against the law in many(most?) states - though of course the chances of you getting ticketed for it are slim to none.
In my opinion, coasting in neutral is improper manual driving technique. You should always be in the proper gear for your speed. This is the reason for the laws against it. I understand that many people were not taught this.
Also be aware that if the engine is idling while you're coasting in neutral, you're wasting fuel, even though the FCD will still be at 150+MPG. In contrast, when the wheels are driving the engine, the fuel injectors are turned off.
It can also be seen as inefficient because it's wasted regen opportunity, unless your pack is completely topped off that is.
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Insight #1 - Silver '01 5MT @ 158,388 as of 7/11 - Best Tank: 84.5MPG over 807mi

Insight #2 - Silver '01 5MT @ 450,000 as of 1/12 - Best Tank: 86.0MPG over 800mi

Insight #3 - Silver '00 5MT, MIMA #163P, BCM Gauge, OBDIIC&C Gauge, BetterBattery @ 228,869 as of 1/12 - Best Tank: 78.4mpg over 687mi
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