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hippy-
It's not though.
As part of my Bike Safe course, i was followed by a Police bike for 6 hours and given pointers and tips when we stopped roughly 5 or 6 times. During those, i was encouraged to increase my speed when overtaking beyond what i was already doing.
By the end of the day, i was overtaking at 50 in a 40 etc, whilst being followed by a Police bike. It certainly drew a few odd looks from drivers I was passing.
Passed the course with distinction though...
If someone is doing 45 in a 50 for no need, it's better to pass that person at 60mph than 50mph so that the maneuver is made as quickly as possible. Obviously you'd then return to an appropriate speed.
Soul
It's an interesting proposal but, in reality, will fail miserably.
My car has road sign speed limit detection and i'd say it's around 40% accurate and is completely screwed by roadwork sections, busy town centres (arguably where speed limiting would be most successful) and long sections with no signs.
Implementing a GPS solution wouldn't work in cities and manufacturers would be less than keen to be on the hook for making sure their navigation systems were up to date with speed limit changes etc.
Also, whilst speeding is definitely a cause of accidents and road fatalities (i still do it on motorways all the time...) being able to be slightly faster than other traffic is a safety feature when merging, overtaking etc. For my police bike safe course, i was encouraged to use the power of my motorbike to make overtakes quick and safe. If that means doing 10mph over the limit to get past another vehicle, that's fine.
It's also likely that this would tank the new car market (in the short term at least) as people avoid cars with the feature.
I'd rather see the industry focus on automatic collision avoidance and autonomous driving features, where possible, rather than limiting the speed that people can drive at.