Hi,
My undestanding is that USB 1.0/1.1 works at 12 Mbps (read Megabits/second) speed. But in reality and due to protocol/packing overheads, you can not expect to reach more than 0.8-1 MBPS (Megabytes/second) sustained transfer rates.
Given that a 1x CDROM speed is 150KBPS, then 0.8/0.15 = 5x approx the maximum reachable reliable speed, which is more or less what you pointed out.
If USB 2.0, then we're talking about 480 Mbps... a completely different animal, being able to easily sustain 33MBPS (UDMA2) speeds.
Regards
FTC