for the report, engineers shot pieces of foam out of a cannon at 500mph and proved that foan traveling that fast could indeed create damage that would cuase a catastophic failure of the shuttle.
But would the foam really strike at that speed? the moment the foam seperated from the shuttle it began decelerating, sure. But being only recently attached to the shuttle, it still had forward momentum - wouldn’t that make the resulting impact happen at a much lower speed?
I believe they determined the impact speed from the film footage, so it should be pretty accurate. At such high speeds, anything not bolted down to the shuttle will decelerate very quickly due to air resistance, especially something light and irregularly shaped like a chunk of foam.
The answer can be found in a sidebar on page 60 of the official Columbia Accident Investigation Board report. (Warning: 10 MB PDF. MSNC has the report broken into sections; this quote is from Chapter 3.)