"The power fade thing you are talking about is very short lived, if you run it hot for a while and get there, then its lasts for a couple of seconds before the motor changes tone and dies from seizure"
powerfade last a lot longer than a couple seconds Raja if
you get the engine hot and contunue to poor it to the engine the powerfade will continue. You engine will be doggy. This what even nitro pilots call letting the engine breathe, but if you let the engine breath and let off the pitch for a second then yes your engine will return to a cooler temp.
Your engine is running faster without the gov because of HP and torque confusion. You and I have had a conversation on this. An indy car winding up on the track depends on HP through each gear not torque. Running without a gov or like I did on my tuned pipe on a climbout I could climbout with 11 degrees and 1910 on the head. I can't fly at 1860 even with that setup. understand?
Also when I was at The Todd Bennit school they taught on an engine without a gov that you could richen the engine on the high end needle to help with over speeding. This is what you are seeing when the engine is richer/ and or cooler on the setup is the needle keeping the engine rpm back a little.
Ace is just saying that with a hot engine it takes more throttle to fly the same in the air.