Answer
Low speed mode may reduce kinetic energy and give the pilot more reaction time, but it does not make it safe to fly too close to uninvolved people. Separation and site control still matter.
Explanation
Risk mitigation is not the same as risk elimination. A slow drone can still injure someone, startle a person into traffic, or hit property after a control or navigation error. Low speed mode is one layer, not permission to ignore the operating area.