There are obviously arguments in favor of personal liberty that would make some people uncomfortable with this, but they shouldn't be. No one should be. If the speed limit on the road is 70mph, there is no reason for your car to be doing more than 70mph on the road, period. I don't care that you want to pass a vehicle that is only doing 69mph, you'll either lower your speed or pass them at 1mph (which, at least in my state, is also illegal. To pass someone, they must be doing at least 5mph under the speed limit, and you can't break the speed limit in order to pass someone).
Now, it wouldn't help in this situation, but it's something that's always bothered me. As we make better and better performing entry-level cars, we can't change the laws of physics. 90mph isn't unheard of as a common cruising speed on a road where the minimum speed limit is 45mph. That's just stupid and dangerous.
from http://www.motorists.org/speed-limits/faq
Q: Is the National Motorists Association a reliable source for this data?
A: I did the 30 seconds of work to go and Google this, go find your own stats if you don't like mine.
Almost all accidents are "speed related". Very few accidents happen with cars standing still.
1) Speeding is illegal. This is a law that is broken every day by millions. Obviously the law and the punishments aren't working as a deterrent, and the next steps usually involve control rather than deter.
2) Do you know how reaction time and braking time change for every 5mph faster you're going? It might not make you cause an accident, but it sure doesn't help trying to avoid an accident.
If you are actually questioning why car engines have enough power to do that in the first place: An engine capable of hauling a heavy load uphill at the speed limit is capable of exceeding the speed limit on a flat surface. Ditto for an engine capable of accelerating quickly to perform a merge in a short space.
If you are asking why cars don't come with interlocks preventing those kind of speeds: Because they're not required, and they're not a marketable feature.
Only one major problem with this -- many areas are funded in large part by speeding tickets. If it is impossible for a car to speed, what will these areas do for revenue?
I'm not sure I would call that "extremely dangerous", though.