Doubtful 60mph would make any significant difference once you account for acceleration and braking, they don't spend enough time at 40/45mph - aside from curvature, crossings and the limited power supply that already causes issues, the turnouts at Smallbrook will restrict speed even for passing trains, and ground conditions at Rowborough wouldn't allow there either.
Maybe regearing would make more sense given the poor acceleration, but they do seem capable of more on occasions - excessively conservative driving policy?
I doubt they took into account how 'old school' Island Line was, untouched by AWS let alone TPWS and OTMR and the increasingly conservative modern railway - it wasn't just new rolling stock and a loop, but a complete cultural change.