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Nah, not smoother, there's just more potential energy in the turbo flywheel so if you ease off for a second it'll keep spinning rather than grind to a halt quickly. With a smaller gear the flywheel is slower so has less energy stored up. If you stop pedalling that energy will run out quicker and it'll be harder to get back on top of the interval. What @cjr means by micro-rests is tiny instances of not applying full pressure to the pedals.
tl:dr - if you're training for flat TTs use a big gear, training for HCs use a small gear. Either way stick to the same gear for all tests and training.
If I understand correctly, does that mean on a ramp test the step would feel smoother?