In some of the conditions that are brought up in these stories, it's not even really safe to travel the legal speed limit. (And reckless driving includes travelling too fast for conditions). Given the resistance of Waze to merely cut out those routes that are not safe for through traffic, it's clear that they do not value safety and I hold little sympathy for them.
I can’t imagine they’d use absolute herd speed as the baseline against the projected speeds of the herd’s speed was a greater value.
However, it does give a reasonable ETA based on real world traffic conditions, and that's a good thing - if today on some street everybody's driving at 10mph then it doesn't matter if it's because of a traffic jam or unsafe icy road, Waze won't send me there.
So what should Waze do? Lie about how long a route will actually take, and pretend like the person is going the speed limit?
Here's a thought experiment. What do you think someone running late who's speeding and being shown a longer-than-actual ETA is going to do? Stands to reason they're going to speed up even more.
Have you ever tried driving 65 when everyone else does 80 (and the law says 65 mph)? It's borderline reckless to do so. All sorts of people will be passing you, creating unnecessary merges and lane switching that decreases road safety conditions.