I am a USB hardware developer if this helps... USB is reasonably complicated concept and is often misunderstood.
USB 1.0, 1.1 and 2.0 are nothing more than specification versions and do not define device speed. Current version is USB 2.0 and previous ones are obsolete.
USB 2.0 compliant device can be low-speed 1.5Mbps device, full-speed 12Mb device or high-speed 480Mb. All modern devices are supposed to be built to USB 2.0 spec and should proudly carry USB 2.0 logo, even if they are simplest dumbest low-speed devices.
Just plugging a low-speed device won't slow the system down
but if there is a lot of traffic between it and the host, this might block other devices from using the shared USB host resource. This is a hub, not a switch so it does not store and forward packets like a switch on Ethernet network.
USB has some protocol overheads so don't expect your actual DATA transfer rates to be equal to bus signalling rates. E.g. maximum theoretical throughput for low-speed (1.5Mbps) device is only 48 KBytes/sec, 1.2 MBytes/sec for full-speed (12Mbps) and 53MBytes/sec for high-speed (480Mbps.) Very few devices actually achieve this as it needs highest degrees of coordination between device and the host.
Out of curiosity you might want to look at basic USB 2.0 spec in
http://www.usb.org/developers/docs/usb2005122006.zip
It does not include device classes (HID, storage, comms, etc)