Sorry to necro this, but in my case it actually does read the signs. I know this because it often misreads the signs (e.g., a sign at the edge of town noting a default speed limit that doesn’t apply to the major road I am on, gets read as being a speed limit); I also know this because for a couple of weeks a particular sign on my commute was down (raising the speed limit) and the car would continue to display the prior speed limit). It’s not consulting a database (which at least wouldn’t impinge on my privacy provided the database is in my car); it’s not phoning home to get the correct info.
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