I am a great driver and people had been present when I got myself out of 'sticky' situations--avoided red-light runner t-bones, people merging into me, parking lot fender benders who don't check their rear, etc.
Problem is, there are plenty of bad drivers out there who would happily go 80-90 and drive recklessly in their parents' BMW (Palm Beach teenagers, anyone?). The deaths due to traffic accidents are staggering and it's a huge public health issue. If speeding is not illegal, then it could be difficult to show wrecklessness or other mitigating circumstances should there be a manslaughter case. IMNAL, but I think it could have wider and unexpected implications.
I agree that many speed limits are somewhat arbitrary, but I disagree with 'smart' means of reducing people's speed. People need to learn how to follow the rules or they don't belong in society... it's as simple as that.