connection limit is independent from request/bandwidth rate. i.e. you can have 1 connection from an IP doing 10 req/sec which is still counted as 1 connection.
your understanding of dyn reqs throttling is correct. 10 GET / request should be throttled and get served in ~10 secs not 1 sec. server log only records a request's arrival time not the time be served. maybe that causes the confusion.