<< That's not from a fuel pressure drop (well, technically it is since it's from zero pressure). The fuel pump keeps constant pressure as long as the pickup is completely covered by fuel. When cornering, fuel sloshes to one side of the tank and away from the pickup, so when the engine hesitates while cornering on a low tank, it's because your fuel pump is sucking air for a little bit until the fuel covers the pickup again. >>
At least someone around here knows something about cars. 🙂 j/k
In modern cars, where the fuel pump is in the tank itself, the pump relies on the fuel level for cooling as well. When the fuel level isn't covering the fuel pump, there's a better chance that doing that too many times will result in fuel pump failure. It's a fact. And for anyone that doesn't believe me, just wait till you have to either change the pump yourself(drain the tank, pull the entire tank off, get inside to change the pump, etc.) or pay for it to be done. Then you'll see. 🙂
edit-as far as it being bad for the ENGINE, well that's a little hooey.