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From your own source:
"For the 20mph sites (which are not thought to be representative of all 20mph roads), the average speeds were above the speed limit for all vehicle types, ranging from 22mph to 28mph but below the average speeds seen on the 30mph roads."
So the average speed does decrease, increasing safety. Just because the effect isn't a perfect 10 mph reduction doesn't mean that it does nothing.
This means the proposal is effective, but it could be improved with traffic calming measures.
The report goes into even more detail on this, the roads measured were primarily those without traffic calming measures. The overall subtext is that 20 mph roads should be built as 20 mph roads, including traffic calming as per the official recommendations. You shouldn't just slap a 20 limit on a road built for 30 - which is what this post is about for Wales.
What they're doing will increase noncompliance, not only in the areas where the road should be 30 but also in areas where it should be 20. It's a cheap blanket change that's more about political brownie points than actually achieving positive benefits.
Can we start with the 20 legal limit and then work out the infrastructure modifications needed?
Why not start with an assessment of which roads should be immediately reduced, which roads should be modified and then reduced and which roads should be left alone? Why not do that instead of a blanket change that pushes responsibility onto poorly funded local councils?
One measure is very effective and cheap. Every city, town and village in Wales becomes safer very soon by just reducing the speed limit.
Your proposal takes years to implement and incurs a massive cost and inconvenience to shut down many roads for weeks at a time. Just to make sure you reap the entire benefit of the changed speed limit. The extra benefit has a disproportionate cost to the proposed solution.
It's certainly very cheap, but only very effective in certain places. It's questionable whether it would be cheaper to target those places exclusively.