How can you reduce the minimum fan speed?
I couldn't find any command line utilities for doing it with a quick search. There must be some though?
Neither smcFanControl or Fan Control are able to set the fan speed below 2000 RPM on my (Mid 2009, Core 2 Duo) MacBook Pro:


Why can't I set my minimum fan speed to 0 rpm?
smcFanControl only lets you set the fan speed in the range of Apple's min and max values. Setting it to zero is possible from the technical perspective but could probably damage your machine.
But would reducing the base speed to say 1000 RPM be harmful? And no, it isn't that loud even now, but the perceived level of noise seems to have a roughly exponential correlation with the RPM.