This concept is already mentioned on the page with an entire dedicated paragraph.
Exactly how slow = extremely slow, is proprietary information the devs do not wish to publish, but the concept remains in heavy traffic it is possible to overcome the penalty, and the prevention behaviour.It is important to understand that Waze uses a penalty-based routing system. It computes the total penalties for a route and selects the one with the least cumulative penalty. Therefore it is possible for big detour routes to occur when the primary route is extremely slow.
Re: [Page Update] Detour Prevention Mechanisms