How can this be legal?

But since it's illegal to drive above the speed limit, by design, it would mean people driving the speed limit would be the ones getting in the left lane to pass slower vehicles.

If a car driving the speed limit is slowing you down, the driver is actually doing you a favor, and helping you avoid a ticket.

As long as you are passing I hope you'd be in the left lane. However, regardless of what speed you are going, once you are done passing move it back over to the right lane.

If a car driving the speed limit is slowing me down that is all they are doing, slowing me down. It is not their duty, right, or even privilidge to police my driving with improper lane discipline.

I'm sure you've seen the signs on I10 saying "slower traffic keep right". Notice it doesn't go on to say, "unless you are doing the speed limit".