There are a number of roads on which the speed limit is actually higher than is safe. For example, there are some winding one-lane country roads near me that are set at 60MPH but really shouldn’t be driven at more than 40MPH.
Should we set them at 60MPH despite being unsafe and probably unrealistic, or 40MPH which is safe and realistic … albeit incorrect?
Thought?
I’d say no. Should always be the correct data - Waze’s job isn’t to babysit drivers [emoji4]
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Understood, but if drivers are unlikely to reach the maximum speeds, will Waze’s estimate of driving times end up being wrong as it will assume a speed that is not really possible?
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I believe Waze will use the historic speed data of speeds driven down the road rather than the speed limits set
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The speed limit is not a target. It’s a limit. 
It’s also (assuming you can confirm it) an undeniable fact and the speed limit set on a road should be correct - not wrong because of a judgement call.
The UK is full of little country roads where the National Speed Limit of 60mph applies, despite this being patently impossible to actually do. Nevertheless, that’s what the limit is.
As regards routing, speed limits are not used in any way whatsoever. There are occasional requests that routing should be modified so as not to produce estimated travel times that would require exceeding the speed limit. But even were that ever to become the case, routing would never take the speed limit as an estimate of segment speed.
For roads with no historical data, Waze will estimate a speed based on the segment type and possibly pull in data from Google. If historical data or real-time data is available, Waze will use those speeds in combination, with more recent real-time data having a higher priority than historical data.
It’s also worth noting that you should not use advisory speed limits. For example, where a sign indicates a sharp curve and advises, say, 30mph maximum. If the speed limit for that road is 50, that is the speed limit that should be set on the segment. 
If speed limits aren’t supposed to be target, why do they put them in those handy round signs with red borders :twisted:
I was once away with a group traveling by minibus. Most days, we passed one of those flashing signs which comes up with your actual speed when you exceed the limit past it. Our driver regarded it as a challenge to get a higher “score” each day. :shock: