In my 2001 Toyota Corolla, the performance was getting abysmal, and the mileage was extremely poor (28-32mpg highway, low 20s city), even on a straight highway trip. I noticed that on some hills, the engine would rev up a little and then it would downshift out of overdrive, and that it seemed to do it more and more on hills that it used to never have a problem on.
As my '95 Previa S/C doesn't do that (and it has a much worse power to weight ratio), it occured to me that the knock sensor was just too sensitive and the timing was getting retarded more than it should have been. What seems to have confirmed it is that when I run 89 octane fuel (rather than the 87 the manual calls for) the performance is much better, and the mileage jumped from about 31mpg highway to over 36mpg (very nearly the original mpg I used to get).
So, either the engine is way carboned-up, or the knock sensor is just too sensitive.
Does anyone have any ideas on this?