You guys talk a lot about damage but very little on what happens in LFS during a race.
I normally drive with the aids off, short of the auto clutch as I don't have a 3 pedal system with a stick shift...maybe one day. I don't really try to rev match or anything when driving. It's odd cause I drive a manual in real life and always constantly make an effort to rev match both up and down gears. In real life, my car will lurch or buck, sometimes violently if I neglect my matching. LFS isn't so physical with you. Without the feeling, it's a lot harder to make an effort to do such things. About all I do in LFS is let off for a second between shifts so I don't bury the needle in the red. S1 punished you easily if you didn't. S2 doesn't seem to care so much. Still, I do it. In LFS for down shifts I don't even match the rpms, just gas off. For the road cars, it doesn't matter much unless you're cornering at the limit. You can upset the rear tires easily and start a drift. I drift a lot, so I personally don't care. I've gotten used to it. In the lower powered cars, it doesn't matter too much what you do with the gas pedal.
Now, when you're working with the Formula cars, it's a different story. If you're off with the matching, you're quite likely to whip the car around. When I first started driving the Formula cars, I actually put the blip and cut aids on to keep me from spinning out all the time. With so much power to the ground on such a light vehicle, delicate footwork becomes oh so much more critical. THIS is where things like flat footing becomes a no no. You just can't do it, not safely anyways.
If you're really working the limits of the car, I'd suggest making an effort to match rpms. If you're in a lazy mood, throw the auto blip and cut on. If you're not running the car at the limits all the time, you have some play room for mistakes and you can leave them off. I personally like them off as I have more fine control over what happens. It's quite helpful when drifting when you purposely want to upset the car. In racing, it may or may not be of use, maybe at times. For speed, eh, I guess that depends on if you screw up because of it. One mistake will take out any gain you would have gotten from it. It's up to you.