Most likely the "Avoid Freeways" setting doesn't work as (you) expected because TomTom's definition of "freeway" differs from yours. I don't mean to imply that either definition is correct or incorrect, just that they differ. I have yet to figure out what TomTom's definition is, but here's what I found at
Answers.com:
A freeway — also known as a highway, superhighway, autoroute, autobahn, autopista, autov?a, autostrada, dual carriageway, expressway, or motorway — is a type of road designed for safer high-speed operation of motor vehicles through the elimination of at-grade intersections. This is accomplished by preventing access to and from adjacent properties and eliminating all cross traffic through the use of grade separations and interchanges; railroad crossings are also removed. Such highways are usually divided with at least two lanes in each direction. Because traffic never crosses at-grade, there are generally no traffic lights or stop signs.
This seems to generally agree with what I would think, based on my experience this is NOT what TomTom considers a freeway.
Regarding limited speed routing, I believe that this assumes a maximum speed for your vehicle, which will change the duration of your trip, and MAY change your routing if traveling (at that speed) on faster roads no longer provides the fastest route. I don't think it is intended to restrict roadway selections based on speed limit of the roadway.
I know that none of this helps with your situation, but I thought it was worth clarifying.
I did at one time consider having two sets of maps - one I would modify (speed limits, road closures, etc) for my work van, and one I would leave unchanged for use in a passenger vehicle. I never followed through with this idea though because the frequency of map updates would cause me to re-do the edits too often.
As it is right now I think TomTom is headed in the direction of allowing users to specify their vehicle type and have the device adjust the routing accordingly. Unfortunately it also appears that they are going in the same direction as Garmin, using vague terms such as
car,
van and
truck, without giving any indication of what these terms actually mean or how they will affect routing.
Vehicle-based restrictions are a very complicated thing, and to do it right requires taking many factors into account, including: vehicle weight, vehicle height, vehicle length, number of axles, number of wheels, maximum vehicle speed, registration type, visibility of approaching traffic at sharp turns, transportation of hazardous materials, etc. I would be surprised if any manufacturer actually implemented something that took even a fraction of these things into account.
In the meantime it would help a great deal if TomTom would adopt a more universally accepted definition of "freeway".