You stumbled onto the pain point. The problem isn’t the intention but the execution. The EU historically has done a better job at nailing the execution of this type of regulation.

If it slows down innovation is debatable but even so there’s still a solid principle behind it, a small speed reduction can grant a huge efficiency gain. It’s usually a worthwhile compromise. You don’t run tour engine only in the red zone because that’s where it makes the most power.