Most people are under the illusion that the speed they are travelling at is the speed shown on the speedometer. This is a fair assumption but not a correct one.
The speedometer - whether electronic or analogue - makes some assumptions about tyre size. Because the tyres wear/get changed and with other inaccuracies in the measurement can be introduced between the tyres and the speedometer, the speedometer is calibrated to be typically 10% or so 'out', over estimating the speed. In this way, no matter what happens to the tyres, the speedometer is not underestimating the speed, which would be illegal (UNECE 39).
Hence, the motorist travelling at '80 mph' is more likely be travelling nearer 70 m.p.h. and, with the police allowing 'a few m.p.h.' over 70, what that means is that, when travelling at a speedometer-measured 80 m.p.h. there is no real reason to slow down to speedometer measured 70 m.p.h. just because there is a police car in the mirrors. However, in practice, 85 rather than 80 mph might be the speed of the traffic and all the drivers around might slow down to 70 instinctively on sight of a police car, forcing you to do likewise.
What would be nice is if there was scope to tune one's speedometer to show actual speed rather than '110% + up to 6.5 m.p.h.'. Theoretically this could result in a more accurate car mileage that, come resale time, could be ~10% less than it would be if set to manufacturer defaults. This could result in higher resale value for the car. However, any effort at 'adjustment' may be deemed 'tampering', get it wrong and it could cost around £700 for a proper, garage installed replacement.
How Stuff Works have more information on how the car speedometer works including the history of the invention and some maths about how tyre size can affect measured speed.
What amuses me about motoring programs is how the likes of Richard Clarkson-May will have a cutaway shot of the speedometer hitting some exciting top speed. Now, if you were the manufacturer, what would you want that speed to show, 180 mph or 200 mph? (where the 200 mph would be ~ 180 mph x 110% + 6.5 mph) Certainly the exaggerated speed would be more impressive and unlikely to be achieved in real life by any customers outside of Germany.