For everyday driving on relatively flat ( < 5 % ) using brakes is cheaper . For everyday driving in > 5 % using the engine is cheaper and safer .
Idahotom , in second gear the rev limiter will engage at 62 mph and 93 mph in third . Second gear will give more than enough power to get you up the hill at the speed you stated without "knocking" or "pinging" especially if you use premium fuel ( 92 or 93 octane ) . Personally I would not put car into third gear until I reach at least 50 mph going up a 12 % grade . Going down third gear is perfect .
Oh 1 other thing , for your particular application , I would highly recommend Amsoil , if you are not already using it
My Yaris ( Coryn ) is no stranger to the Mountains
http://www.youtube.com/watch?v=OBT2e9E9yFA