Like you I like the amount of engine braking on the S10 and use it every time I decelerate.It refers to when you roll off of the throttle, regardless of gear, the engine compression slows the rear wheel. I'm always in "S", so I can't advise the difference. This bike has heavy engine braking....I love it , and use it. It does take getting used to, but once you do, you'll find that your riding style just blends it in. It took me a couple of thousand miles to realize that with the amount of engine braking the bike produces, it only takes a light touch on the front brake lever to slow it down.
On most other bikes I have typically replaced the front brake pads every 20-25.000 km - on the S10 the OEM front brake pads lasted 85.000 km (the rear 55.000 km). The insanely long life of the brake pads on my S10 is surely a result of the effective engine braking.