They also use eTorque to control crankshaft speed - it's why they start and stop smoother at stop lights. Yes, the transmission still downshifts and upshifts, but normally the clutches do work to match the crank speed for the desired gear. With eTorque, the motor can help accelerate and decelerate the crank, so the clutches aren't doing as much work and the shifts are smoother.
Here's an FCA rep talking about exactly that - the gas engine does this to an extent already, but it's just one example of how an electric motor can react faster and doesn't use fuel (edit 4:42 is where he specifically mentions using eTorque rather than clutches)