Yes, if you were to drive as if every car in front of you could run into a magically appearing brick wall, then you would really need such large distances. Luckily, that's not the case.
However, if you want to drive in compliance with the "Basic Speed Law", which states "No person shall drive a vehicle upon a highway at a speed greater than is reasonable or prudent having due regard for weather, visibility, the traffic on, and the surface and width of, the highway, and in no event at a speed which endangers the safety of persons or property", ie. taking into account that you can run into stationary things, then you really have to conclude that your visibility must scale as v^2. So if you are going around a corner and need to be able to stop in case the road is blocked (ie CA 17) then this is the distance you care about.
As an aside, I think it's quite an interesting question as to what the optimal distance is if you take into account the fact that people will cut into your cushion space and make it <50% of what it was. It seems it will be the largest distance that other drivers still think is too small to merge into.