I downshift all the time to slow down.
All the way down to first.
If I see a red light or stationary/slow ahead, clutch out, blast of gas, gear down, clutch in, coast until I can shift down again.
Going into first, I usually use two jabs at the gas pedal and some clutch slip on the down-rev to get the match right and avoid juddering about.
Yes, rev-matching might reduce some of the efficiency gain from shifting down to coast, but it also reduces clutch wear and drive train stresses, and makes the car more controllable and easier to drive, as you are in-gear and don't have to focus on the left foot operating the clutch.
For a beginner, the one rule when rolling up to a red light from a distance: coast and shift down when the engine drops out of the torque band. For N/A cars, that's usually between 2k-5k rpm (depending on displacement, stroke), for turbo's it's around 1.5k-2.5k rpm (but of course, you have to wait for the turbo to spool up to really get the torque) and a decent hybrid should just switch the engine off. Superchargers should be somewhere between turbos and suckers, as they need RPM for boost, as opposed to throttle.
Once you have identified the low rpms for the downshift, the amount of throttle and waiting needed to get to the proper rpm of the gear can be learned. Irritatingly, if you're outside the proper rpm and try to revmatch the downshift, the amount of throttle will be different, the target revs will be different, and you can get it jumbled up. So it's important to get the timing right.
Oh, and why do I go down to first?
While slowing down, I use no fuel, and while idling towards the red light, I use the same amount of fuel, I would while idling stationary, excepting some very slight rolling resistance issues and drive train losses. I also often get lucky, and the light changes to green, while I haven't yet come to a stop, and I can just pull away without having to clutch-in in first gear, further reducing clutch wear. Of course, that's not something that's possible in dense traffic, but in light traffic, it works quite well.