Cars may have gotten better, but has the reaction time/skill of the
average driver improved? It [i]might/i] well be that 70 is low. But just because the technology is available for the -average- car to go at over 300mph, it doesn't necessarily mean that it would be safe for everyone to drive at 200. At one point or another, the car may provide more speed than can be safely handled by the average drivers.
There is an interesting table on this page:
http://en.wikipedia.org/wiki/Speed_limit#BCMT2003
I might read the pdf source later to see if there are other things the tables do not tell us, but on the face value, a lowered limit seem to have had a positive impact in some countries.