It's what urban speed limits are in Sweden, and they average about one pedestrian death a year in the entire country.
I believe OP meant maybe 40mph is a good balance between the two factors of speed (higher is better) and survivability (higher is better) from a corporate risk / insurance perspective.
Raising one of these lowers the other - so the actual threshold depends on how you value speed / convenience vs accident survivability / risk, and what you want to market your car as able to do (few consumers will see a 20mph self-drive speed limit as a viable self driving system).
vr = (c^2 - 1)^0.5 v1
where v1 is the original slow speed with which you'd come to a standstill just before the obstacle, and v2 = c*v1 is the faster speed, and vr the speed with which you hit the obstacle coming in with the faster speed (assuming you hit the brakes at the same spot, and constant deceleration).25^2 - 20^2 = 15^2
The level of absurdity in suggesting a moral element to driving a car at below 30mph just shows how fundamentally biased people have become about a normal part of everyday life. For whatever reason
Then make them drive at 1mph
And if there is a sudden obstacle that you can just avoid hitting going 20mph initially, you'd hit it with 22 mph if you're going 30 mph initially (assuming no reaction time and constant deceleration).
I submit that that's a massive difference: hitting a child not at all or with 22 mph.
In my experience the people supporting these measures are adopting them not because they care about safety at all, but have another agenda.
If you have a car with a AEB or CMBS (automatic emergency braking, crash mitigation braking system) the owners manual has a ton of fine print about it only making crashes less severe, not preventing them outright.
Although driving at 60 kph on German highways seems quite risky; at that speed, most trucks will overtake you.
On the other side of the equation, nobody would feel comfortable cruising along at that speed, since you'd be continuously overtaken by trucks, which drive a little more than the allowed 80 kph unless it's physically impossible.
1) Stopping distances go up as the square of speed, so 40mph has huge advantages over, say 70mph.
2) Survivability of accidents at 30-40 are way higher 70 (unless pedestrians are involved, in which case 30-40 is already too high.)
3) Radars and Lidars really can't see/classify things very well at the distances required to do comfortably stop for obstacles at highway speeds.