Yes, on downhill slopes the regenerative braking on coasting does not hold the car back as much as engine braking on a conventional car. Hence, it coasts a little freer. It's pretty far from a freewheeling coast that you'd get from any car in neutral, but it's freer than normal engine braking.

The worst cruise controls I've experienced (have rented many of them) are on Nissan Altimas and Maximas, where they overspeed by 3-4 miles per hour as soon as you start going downhill, then back off to the set speed. This happens on every hill, even small ones. The TCH cruise control works much better than this, even without as much resistance from engine braking.