Yes it is. Do you mean, it would make driving more inconvenient, since drivers would have to slow down when they passed?
I don't disagree with any intention of improving safety, but there are pragmatic reasons we shouldn't unconditionally implement reduced speed limits around children.
In the UK, all this is done by putting up street lights. The Highway Code then dictates that the road has a speed limit of 30mph and is residential (no compression braking).
I don't understand your comment about overtaking. Are you thinking of long, straight roads with mostly-evenly distributed houses over a large distance?
In an area zoned for residential, e.g. a small town or village, the speed limit will drop and there are noise restrictions. That's quite common, although also quite sparse within the land area.
I've been speaking to unincorporated areas that have no zoning. Many of them are as you described: long, straight roads with mostly-evenly distributed houses over a large distance. These are the types of rural roads that make up the vast majority of land area in the midwest area of the US.
Regardless, living on a highway is not prime real estate.
The only time I see otherwise is if mountains or rivers are involved, or there is density (in which case it is sure to be zoned!).
With very low traffic density, you might build the house closer to the road (maybe 10m off, separated with trees) for just that reason – to save land. (Not all rural houses are farms.)
People live directly off of highways. So highways should be 25 mph? 30mph?