From where I'm sitting (1.4 averaging 35mpg) this all looks quite good. I don't think I have the self control to achieve these sort of consumption figures
I'd imagine that your 35mpg is taking account of the LSD which has a 3mpg penalty. But I would get those figures around the town. I have
already posted some real world figures for motorway / dual carraigeway driving with 2 different averages of 43.2mpg and 40.2mpg with a latter figure on a more spirited drive that was just 'short' of getting points.
I can easily get 48mpg average on a more leisurely country drive (already posted this) but with the shape of the 500 with the high roof on a motorway travelling at 80-85mph keeping up with the flow of traffic and getting around 40mpg is better than struggling with lane shuffling at 70mph and getting 45mpg.
Also I have no proof of this but at Autobann 90mph I reckon the 1.2 and 1.4 return the same 37mpg figure. I have no idea what the TA returns at this speed but we will know when arorat gets back from his Europe 'ipad' tour.
Durukan has posted some amazing figures for town driving but that must have been with the Euro 5 engine with stop / start which is different to the 'normal' Euro 4 1.4 engine in most pre 2010 models.
I am also dubious about lugging along in a high gear with low revs in the 1.4 - it is a engine with a torque curve higher up the rev band - if you want economy you're better off in a 1.2 or being a saint in a TA.
My experience of the 1.4 is that it needs to be 'opened up' occassionally otherwise it gets sluggish - a bit like deposits get built up that have to be burned off.
This view below is probably correct for 'normal' engines but may not apply to the new breed of multi-air engines like the one in the 'diesel like' TA.
Does using too high gear damage your car?
Yes it does damage the engine by putting excess load on big end and main bearing shells and if you do it for long periods the engine will overheat due to low water pump speeds causing poor coolant flow
I believe that to improve the mpg on the 1.4 (besides easing up on right foot) you would need to use
1. A less restrictive CAT by changing the manifold and using a 100-200cell sports cat
2. Tyres with less rolling resistance
3. Having a better Air filter or CAI