If you run more trains and you do not increase the track capacity then you end up running slower trains.
It works with roads as well; if you want to get more cars along a road - safely - in a given period, you need to get them to slow down. When I read the Highway Code for my driving test - in 1979 - I noticed that braking distances increased in proportion to the square of speed, from which this follows with remorseless mathematical logic. So, where roads are up against capacity, as they are inevitably in cities, traffic has to go slower. It also means fewer people get killed and seriously injured.
The 'slow down to make roads more efficient' argument may not seem to justify slower speed limits, because most drivers are sensible enough to adjust their speed to the traffic density without being coerced. But it does suggest that if slower speed limits were introduced, responsible drivers would be able to get over it, and also that they would hardly undermine the local economy.
The problem is where the reasons to slow down are not so obvious to normally responsible drivers - e.g. residential and side roads where it would be great if people walking to shops and other local amenities were not put off by cars going uncomfortably fast. I know there are serious issues with enforcement - why else would road humps have ever been introduced? - but there are 20 mph zones in other parts of London.
Would other STFers like to see them here?