The governor DOES act as as a speed limiter. That is why it is there!
In this context, we are talking of mechanical governing, particularly with a forty year old engine.
Electronic speed control is completely different.
If the engine is running slowly, and the throttle lever is moved against the Max Speed stop, the spring force will exceed that provided by the governor weights, and the fuel delivery will increase to increase engine power and speed.
The engine speed will increase until the force provided by the governor weights equals that exerted by the governor spring
When the engine is fully loaded, at rated speed, the force exerted by the governor weights is equalled by that applied by the governor spring.
If the load decreases, the engine speed will increase and the governor weights will exert more force than the governor spring, and begin to decrease the fuel supplied. The engine is now going down the governor curve, and when all the load is removed , the engine will have the fuel delivery reduced until the engine runs at Max No load speed.
The gradient of the curve (Run out – change between FLRS and Max No Load Speed (High idle)) will depend on the spring rate of the governor spring, and levers within the governor system.
An engine driving an alternator will have a low % run out (Tight governing) to control closely the supply frequency. So would an engine for a combine harvester, to control reel speed. Probably 5 %
50 Hz – 1500 rpm, 1570 No Load, 60 Hz – 1800, 1880 No Load
A vehicle , or marine propulsion engine does not need close governing, so the run out could be 10 – 15%
3200 FLRS, 3625 High Idle means a run out of 13% What would be called “Slack Governing”, so being marine propulsion, precision is not called for.
This would merely limit engine speed if the prop came out of the water, or the drive shaft disconnected or broke.
As the governing gets tighter, for any reason, stable speed control becomes more difficult, but with special damping, isochronous governing (Zero run out) becomes possible.
Tight governing on a vehicle can be unpleasant, Run a Series 2 Land Rover upto No Load speed in the gears. When the governor cuts, the change in power feels like someone has killed the engine
Gardner powered vehicles can feel the same (1700 rated speed, 1770 max engine speed)
Hope that this gives a better understanding of how a governor operates on an engine.
Howard