The reason I said you disregard other's lives is because you said that measured speed of drivers is all that should be used for setting speed limits. Bigeman basically nailed it.
Every driver who pushes past 85th percentile is justifying an increase in the speed limit according to that rule. Thus the speed limit keeps getting pushed up, while the potential victims of speeding are silenced by the same rule. They get no input, because they are not inside of motor vehicles. Perhaps if you counted the 85th percentile of all road users then it might make more sense: people walking and cycling -- even people loitering too.
Why do you think the city has been reluctant to use speed studies thus far? It's because of this very problem: people walking and cycling are ignored by speed studies, and drivers routinely break the law. So the result of a speed study under the current regulations would have the effect of recommending an increase in the speed limit! Even though the common sense approach would say that's madness.
Speed studies were designed this way in order to prevent them from being used for creating speed traps. I certainly don't want to create speed traps. But I do want people to be driving safely. And the danger caused by high speeds is, in my mind, a much greater moral imperative than worrying over speed traps.
The designated speed limit also has a big effect on future design changes to the street. It tells the engineers what the desired speed is, and then they can design around it. Whereas under the current law, they are not allowed to design for under 30 mph, and as a result, most drivers go 35-40 mph. When the city decides that a street should be 20 mph, then they can go to BTD and BPW and say: change your design for the next iteration of this street.
For example, if you want to see nice calming, "living street" features on residential streets, then being able to designate them as slower areas is going to be very important bureaucratically. But right now there's no distinction between arterial streets and such residential streets. They're all 30 mph!