Lets see, Do you think they slowed it down more for the inexperienced players?
For example, Back in 1.0 when that speed was completely new, there were alot of aimless swoops, only very, very 'skillfull' or 'high sensitive' players could hit their opponent more then they missed. Which, consequently, resulted in the abundance of head ons. However, with the speed decrease, I, who was a Head on Whore, have come to found myself not hitting as many head ons as I did before. (You have to take this into account, because I think Halorin stated this somewhere before the 1.2 release which is why the speed was decreased [not sure])
But being that 'they' lowered the swoop speed in 1.2, the maps seem bigger, and lots of empty space seems to be abundant, also. I'm perfectly fine with the map sizes, the empty space is needed due to the more plentiful beams in this version. ( I don't think 1.0/1 had as many beams in it as this one does.)
Furthermore, I feel that given more speed, head ons would be reintroduced into the version which caused an enormous amount of flaming and pointless threads here... However, the game would then again be more 'experienced player' dominant. I feel that the speed decrease was just a plan to sort of get us ready to for the new speed upgrades, which in that case I'd rather have it go slower so that speed from SSj2 and Sj would be a dramatic change rather then having it be increased by smaller increments.
On the other hand, the current melee system requires players to be closer together. If there were the old style swoops in and the non restricted teleports, fights would be longer then they are now. This melee system and the swooping system goes hand in hand with one another. If it was 1.0/1 then the longer faster swoops would be more necesary to chase and 'combo' your opponent.The 1.2 melee is closer, and the hit back is not nearly as far as it was before. I think the team did a good job to balance out the speeds and the game modes.
Legend, I know how well you play this game, but if it was at all faster or the same speed as 1.1, Do you think it would change your views on the melee system which you seem to dislike with a passion? Think about it, the swoop would be sped up and the basic melee combo hits would still be restricted to 2 hits per hit back + the bonus for the terrain hits, adv. melee would still be split for both attackers and the game would have more aimless swoops...