well.. IMHO with just the governor removed, the engine won't get anywhere near a dangerous rpms for neither the flywheel nor the conrod.
As soon as you increase compression (sorry, hehe.. but yes

) you might want to think about the conrod,
and as soon as you play with the idea to install heavier valve springs to get rid of the valve flutter at around 5000-5500 rpms you want both.
Now, it might be indeed the cam (and the compression release)
if you for example forgot to remove that flimsy little washer that sits behind the governor..
that might have rattled loose and got stuck somewhere (even in the cam)
Easy to test without disassembly though, just seal the exhaust for good,
the decompression acts against the exhaust valve and if the exhaust is blocked,
the cylinder has something to work against
So try that first.
if you still do not get satisfactory compression,
check the head first, remove the valve cover and check if the intake valve got stuck,
(you can also see and observe the compression release on the exhaust valve)
if that's the case, stop here and open the crankcase
(a lifter issue, maybe a bend pushrod...)
check cam alignment again after checking and reinstalling everything else.
And if that's all good solid, clean and without debris (tiny washers

)
you likely blew your head gasket for some reason.
(head not torqued to specs perhaps ?? but why?? *shrugs*)
then, check and reset valve lash where necessary and you'll be good.
'sid
PS okay if you find shards of metal in your oil... you need to find the origin and act accordingly of course ... no need to mention that, I guess
