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Not sure what was wrong with your friends car, but Lexus's of that era had 149 mph speed limiters. They are generally now set between 145 and 155 depending on the model. The only exception is the ISF which is governed at ~170. You can get a faster speed on the speedo, but that is do to errors in speedo calibration not that the car can actually go any faster than what it's governed at.
If you are interested in removing it, there are myriad posts on Lexus boards about it and it's actually kind of an involved process as the Lexus governors are pretty ingrained depening on the year.
The one of the most common use of speed limiters is to match the speed rating of the tires. Many manufacturers have at times chosen a tire with a low (cost) heat/speed rating for a model and then dialed back the speed to match.
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