Yes. The downside is increased asymmetric tire wear, with the middle wearing out faster than if the tire were correctly inflated. But with gas prices where they are, it still may be an economic win. Traction is less though, so there is an increased chance of crashing in some situations.
I don't think that my tires are so overinflated, though. Assuming the tires are now at the correct pressure, do my figures above agree with automotive experience?