GregM said -- Usually the difference between hi and lo speed on AC's is rather subtle.
Not always. I have no way to know if what you describe is the correct low speed operation for that unit, but we had a 1960s RCA Whirlpool window unit that had a VERY slow low fan speed. Barely blew at all, sort of like a trickle of air. Nothing was wrong with it, that's just how low speed operated.
Interesting thing is that we actually had TWO of these units, almost identical. They were small units, 6,500 BTU as I recall. Both of them had the inside-out style fan motor. The older one was original to the house that my parents built in 1964, installed in their bedroom, and it had a 'normal' low speed. The other was a little newer, my father bought it used from his uncle to put in my bedroom, sometime in the late 1960s, maybe 1968. I rarely ran it on low speed because it was too quiet on low, didn't block the ambient noise very well.
Having grown up in a house with window units, I cannot sleep if the room is too quiet. I must have a fan running as a source of white noise.