Yet another person who barely (or not at all) skims the thread and make an inflammatory response when his point has been addressed before... The current speedo is NOT showing you how fast the car is going, it is merely showing you how fast your are moving towards the point your hood is facing, two very different things and that measurement is entirely arbitrary. GT 1-3 had an accurate GPS style speedo that actually showed you true car movement speed. And no, I'm not merely looking for them to make the speedo realistic, but as it is it's neither realistic NOR accurate. Also if you tire spin a real car against a wall, the speedo will NOT stay at 0, so you are wrong there.
lol. i'm sorry. but i can't find the reasons of your complaint so i didn't read the whole thread. but others have already stated that speed is taken in different ways depending on the car. and each one has it's own drawbacks and of course inaccuracy in real life.
for example:
from tranny - tranny speed is of course not your road speed, so a conversion factor is used to convert it to a more meaningful value to the driver. this is usually based from final gear ratio (differential), tire diameter, and other things that gets in between the tranny and the road. anyway, even changes in wheel diameter would create discrepancies between the road speed and your actual "GPS" speed.
from driven wheel - speed taken from the driven wheel is also inaccurate on certain conditions, i.e. when the driven wheel is slipping. a lot of events can cause this, drifting, driving in wet/icy roads, on dirt, etc. basically, it's only accurate if your wheels are not slipping. do burnouts and it will also show a speed your car is not doing.
from not driven wheel - only accurate when the tires are travelling straight or with very little slip angle, differences starts to show the greater the slip angle of the tires is.
point is, speedos in real life are also inaccurate given certain situations that's why i find your OP a bit senseless. why complain about inaccuracy on irregular events (drifting and revving against a wall) when the real thing would also show inaccuracies on those situations?
also, i'm pretty sure that most of this technical data in GT5 is based on some complex physics computations and formulas. if it can be computed, it can be shown in-game or used for other computations. meaning there has to be something that the game can work on before it can show something. but GPS readings aren't computed, how can you retrieve data taken from satellites and emulate it in-game? if they can somehow make that into game, data has to be fake somehow.