Field Report: 'Pops And Bangs' Are BAD | Sequential Shifting 101.

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The 1000hp capable Honda K24 in Mike Burroughs Stanceworks 244 GTK Ferrari build is useless without the ability to put power to the ground, and Scott Hilzinger of Haltech explains how the Haltech electronics system handles this via a Quaife 5-speed dog engagement gearbox.
This setup utilises a load cell gear knob and shift position sensor as well as other sensors on the car to give data on if the gear changing is optimal when it comes to keeping the car balanced and as fast as possible, with INCREASED reliability over manual gear shifts.
Also, why are 'pops and bangs' bad for an engine, and what can a tuner do to help avoid them to give some mechanical sympathy?