quartodeciman,
I think it's not a question of 'approaching light speed'. Just think about the effect of e.m. induction (discovered by Faraday in 1842 or so...). When the coil moves, and the magnet is at rest, the effect is easily explained via the Lorentz force. Which requires moving charges. But induction will also work when the magnet moves, and the coil is at rest. This can not be explained by Galilei transformation. It is, however, explained by Lorentz transformation, which predicts that, if a magnetic field is transformed into motion, there will be an extra electric field. You can demonstrate this very easily in class, where the velocities involved are only some cm/s. I think this is where the conflict originated: the strange transformation behavior of e.m. fields.
I think some people introduced ether theory to save the Galilei transformation. So an experimentum crucis was needed to judge over ether theory. That's where Michelson-Morley comes in. I know, up to today, there are some people who doubt the standard interpretation of MM. But I believe the interpretation is correct, there is a null result, and ether theory must be abandoned in favour of Special Relativity.