The OSRM code I linked to is a test case proving the existence of behavior that is uniform globally. The code that implements it lives elsewhere.

The Australia tagging guidelines don’t discourage using route=road for ordinary streets because of common sense. Again, the use of “route” for non-routes is a slight perversion of the language, even if it’s one that we live with for historical reasons. The tagging guidelines were overhauled just a few months ago after extensive discussions. If there was any thought to modeling streets as highway routes, one would think the Jacaranda Street example would look a little different.

I should clarify that this distinction between routes and the roads that carry them is not specific to the U.S. (Even in the U.S., some states make a clear distinction while others do not.)

Anyways, I’m not opposed to retagging as route=street if you feel strongly about doing that yourself. But so far I haven’t heard a particularly compelling reason as to why route=road needs to be used here when there are more accurate alternatives.