We're not talking about REMAINING in neutral, but rather going into neutral during the 'glide' portion of the pulse-glide.
I see no harm in it. Some came up with the possible problem of over-reving MG1 since ICE cannot be started if in neutral. But unless you are gliding downhill, you wouldn't be accelerating in neutral, but rather slowing down. If ICE rotation was needed to protect MG1, it will already be spinning when you go into neutral. If it wasn't needed and wasn't spinning, it is not likely it would be needed during the time you are in neutral.
For THSII, MG1 can rev to 10K rather than the original 6.5K RPM in the classic, so you have additional protection there.