Yeah, good point. But I think it would still work. It all depends on how the circuit determines an over-rev condition. If it takes only two spark plug pulses to determine whether the engine is out of range, then I think using the spark plug wire to get your reading is a great idea.
If two pulses are too close together, causing the device to cancel the next one, the next pulse will be within the tolerable limit, because the period will be twice as long. This will cause the device to allow the next pulse. These two would represent a standard, uninterrupted reading again. If RPM is still too fast, it will again read too short of a time between that pulse and the next one, which will cause it to cut out again for one pulse.
The effect would be that if you were near the red-line RPM and started coasting downhill, the limiting device would eliminate every third power stroke.
I suppose you could program it to turn off for half-second intervals instead, or whatever you want. But sensing the time between every two pulses seems like a very good idea to me. When the limiter is activated and makes the plug fire on two out of three power strokes, the extra fuel wouldn't accumulate. It would be burned off right away, which wouldn't happen as well if your device were programmed to cut off the spark signal for some longer period.