The 40 miles per hour (or so) is actually a mechanical limit due to Toyota's power split device that Nissan uses. When the engine doesn't run - 0 rpm - and the wheels are turning using the electric drive motor (MG2) at about 2400 rpm it means the generator (MG1) has to be turning at it's maximum speed - about 6,250 rpm. In order to go any faster the engine has to start so the generator speed doesn't over rev.
http://eahart.com/prius/psd/
I've got a mile run I can do on EV - it ends right in my garage.
I was reading about someone who attached extra batteries to his Prius that could do a 7 mile run - he had to cut if off at that point because of lubrication concerns. I guess the gears don't get the same lubrication in EV as they do when under engine power.