The way I am reading this may not be correct, nor is my understanding of the system. So please be gentile and teach me if I am wrong (I don't have an LC yet but I do have a Rav4 Hybrid....) but:Noticed this too and wondering the group thoughts, anytime i downshifted on long hills, the engine stays on the whole time, and i think the engine braking with the small motor is kind of crap. On the flip side, if you lease on CC, i think it uses the electric engine to do regenerative braking and slow the car that way, but no way to know for sure that its not just the regular brakes.
I don't think downshifting has any benefit to regenerating power to the batteries unless it's literally that because the engine is running it is charging the battery. However, my understanding is braking, until you really get into them, does. So, my understanding which is based on a Rav Prime which may not translate, is that if you are truly hypermiling your best benefit would be from coasting down the hill / light braking application. Downshifting won't get much of a benefit. Furthermore, if you anticipate stopping, and want the best hypermiling performance, you would brake early vs wait until the last second. The regenerative braking is effective until you get pretty into the brakes, then it uses the brake pads to stop.