I suppose it's possible this has been the wrong direction, but I suspect it was effectively correct.
And in most cases the compiler is much better at optimizing than humans. Register allocation is probably the archetypical example of this. C has a register keyword that the compiler is supposed to interpret to mean "try to put this variable in a register". In most cases you aren't going to be able to perform a liveness analysis of your variables better than the compiler can, and I'm not even sure that modern C compilers even pay attention to the register keyword. They might just perform their own optimizations since compiler writers realize that in >99% of cases, that's going to be better anyways.
Lastly, to touch briefly on types, this is one area that does make a difference on runtime performance. Basically, if the compiler can type check code it can perform more aggressive operations because it can rule out certain classes of errors. Additionally, static types don't have the overhead associated with dynamic typing in terms of tagging variables with their type information. Functional languages in particular are nice from a compiler writer's perspective because if you can guarantee certain parts of the source code are pure you can perform more optimizations that you could otherwise. For example, let's say you're using C++ and you have a function that doesn't return anything, doesn't take any arguments, and doesn't update any globals. A Haskell compiler could probably eliminate this function call, since it doesn't seem to be doing anything, but in C++ it's most likely doing I/O or is being called for some other side effect and so we have to keep it around.
And that can cross libraries: if you #include a standard header, a C++ compiler may assume that calling, say, malloc() or exit() does what the standard says it does. That way, even a function that calls malloc or gettimeofday can be optimized away before it is even linked.
And of course, in many compilers, programmers can use #pragma's or attributes to instruct the compiler "you can assume this function is pure/doesn't return/returns newly allocated memory/etc (http://gcc.gnu.org/onlinedocs/gcc/Function-Attributes.html)
If you do that meticulously, the compiler has way more room for optimizations.
Then the programmer was expected mostly to trust the compiler, which either applies massive, unwieldy (for a human) optimizations at compile time, or develops new optimizations on the fly based on JIT profiling data, or both.
There has been not nearly enough research on cooperating with the compiler, and providing information that's useful for developing specific optimizations, doesn't force potentially unproductive optimizations if that information is wrong, and still represents the information at a high-enough level that it's human-comprehensible.