Yup, finally hit 35 MPG today. At the beginning of this tank, I aired tires up from 32 to 40 psi. I was thinking it would make for a harsh ride and such, but it's actually a little smoother and cornering has really improved.
But one thing I didn't expect was the increase in MPG!
32 PSI same trip to/from work @ 60 MPH = 31.90 MPG
40 PSI same trip to/from work @ 60 MPH = 34.97 MPG
Disclaimer: I do not represent forteforums.com, do this at your own risk, yada yada yada.
If it's overinflated to the point that most of the car's weight is concentrated on the center-most tread blocks, compromised traction and accelerated tire wear are what you get along with your better gas mileage. Wet grip will be worse as well.
My sister's Mustang is all the evidence I need of what happens to overinflated tires. All four were bald right down the middle because in her infinite wisdom, she filled them to 50+ for her trip from PA to WY and forgot to let it out when she arrived. A few months later, she found herself replacing them and got some stern advice about tire pressure from the guy at our Firestone store.