Here's a little trick you should try, to give you a better picture of where you're at with your gearing:
Tie a length of string or something to the governor arm- do it in such a way that you can override it from the driver's seat. On a long, flat stretch of road, drive at wide open throttle to top speed, and keep your foot to the floor. When you attain top speed, go ahead and pull that string. If the kart begins to accelerate again, then you had some room for gearing in there. You could safely go to a slightly smaller axle sprocket. This also indicates that at your current gearing, you would see a top speed increase by removing the governor. If there is no increase in speed, then your gearing is limiting the RPM, not the governor. You can either keep it as is, or go to a larger axle sprocket.
Either way, only do this for a second. If you push your luck, you may break something.
The more I re-read your posts, the more I think something is not right. Governor may be out of adjustment, and or a weak spring. Maybe your low oil sensor is barking at you. Gearing down may cause you to bounce off the pin, but gearing up should not. Unless, your kart is bouncing so dang hard that ALL load is being removed sporadically. If that's the case, it seems to come down to remove the governor, or live with the surging.