He isn't joking, but they are all being big ole drama queens about it.
Funners and me did 2500 miles around Norway in 2009.
IIRC we saw 3 police cars in the entire time.
All three were in fairly built up areas, where it was obviously going to be policed so we were sticking to the limit.
Out in the mountains tho, speeding isn't the issue some would have you believe.
We cruised at about 80mph for the most part, same as we do in the UK.
Christ, who is going to nick you for speeding out here?

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Just don't go stupid speeds in stupid places, same as I'd hope you wouldn't in the UK. Yes the consequences of being caught are FAR higher, but the chances are FAR lower if you think about what you are doing and where and how you are riding...
As for your other questions about wild camping safety, just get on with it...
Its one of the least crime ridden countries going...