I am pretty sure that every single interstellar travel technology wildly exceeds the speed of light.
Although a game where it takes upwards of ten years to travel to your average neighboring star would be interesting, I don't think that's what Paradox is going for. You don't create a galactic empire when it takes a good chunk of a lifetime to travel between stars. Kind of hard to bother with trade. It'd take a decade or longer to respond militarily to an invasion unless you already had a fleet there. Which is absurd.
If you think about it, the only way a galactic empire type game makes sense is if people can navigate the stars in the same way we navigate the earth; relatively quickly.
The only real issue with a short timescale is population growth. Which, if they did the game the way I think they ought to, would not be a big deal, because the game would be more about manned outposts and moving pops off of your overpopulated home planet rather than like, rapidly growing colonies everywhere. Growth should be relatively slow outside of habitable planets, and most new pops in colonies, especially in the start, should be emigrating from your homeworld. It should take about 15-20 years before any newly generated pops on a new colony appear. The rest should come from the homeworld, based on how attractive colonial life is, and how unattractive your homeworld is.