If your situation is like mine and leaving it in gear down the hill slows your acceleration, but does not actually slow the car down then yes I totally agree that leaving it in gear is the way to go. As to the 4th vs 5th I also believe that 4th is better for the engine as I stated above but this post has got me thinking more about the "what's better for the engine" question.
We have two situations:
One in which the engine is operating at high load, low engine speed. This is more efficient presumably because there's less frictional loss at lower speeds and less parasitic throttle drag. However, stress on internals is higher because the engine is operating closer to peak power (shown as a higher throttle opening and higher LOD number on the SG2).
And one in which the engine is operating at lower load, higher engine speed. This is less efficient because of higher frictional losses and more parasitic throttle drag, and causes more friction-related wear on the engine. But it's less stressful on the internals because there's less load being put on them (operating further from peak power).
So what we're insinuating here is that operating an engine with higher load but lower frictional wear is more stressful on it than operating with higher frictional wear but lower load stress on the internals.
This makes some sense because while the oil can protect the engine from frictional wear to a degree, we have only the materials engineering of the internal components to protect against high load stress.
So it seems to me that what we're really asking is (with some exaggeration): Is an engine more likely to become a gutless, oil burning pig due to ring and cylinder bore wear from higher frictional wear over the years, or is it more likely to snap a con-rod or wear out a bearing due to higher load stress over the years?
I'm still in the "option 2" camp, but when I phrase the question this way it makes me realize that I have no engineering basis to vote one way or another. Anyone have any better information, or can anyone poke holes in my logic?