So, I'm not a traffic engineer, but I do work with several on different projects.
In the city, speed limits are not designed for revenue or assuming most people will exceed them. They are designed because that is the safest speed to drive. They assume several things here:
1. Non-ideal conditions with many traffic lights require slower speed limits.
2. Views are often blocked by building, landscaping etc.
3. There are many types of traffic that do not conform to our "car society" but are still legal users of roads. (bicycles, pedestrians, etc.)
The 55 MPH speed limit was also not a matter of safety, but of energy savings. That's a whole different issue, however.
You can think what you want, but I can assure you that speed limits inside cities are not some sort of conspiracy. It's far more likely that most people feel they are better drivers with quicker reaction times than they actually have.
EDIT: Quick elaboration. There's a saying in architecture, "You design a parking lot for a busy Saturday, not the day after Thanksgiving." Speed limits are a compromise. You likely can go faster often (though like I said, most people are not nearly as good drivers as they think they are), but you must consider the times when you cannot go faster when designing the road (night, rush hour, rain, etc.). Speed limits are designed to find a good compromise. Remember, if this were a conspiracy, you don't have to be speeding to get a ticket, you can be pulled over for "too fast for the conditions".
The thing to remember is that speed limits are not set by politicians, they are set by engineers.