I've been rebuilding my Maxima's 3.5 L V6, so small engines are a piece of cake for me now lol.
OP: I'm not sure if you think it's a problem, but that's how the throttle is supposed to work if you loosened the tension nut to allow it to swing back and forth with ease. On an out-of-the-box engine, that lever will stay in whatever position you put it in. On the lever is a spring which
I believe pulls on the carburetor butterfly valve. It's been close to a year since I've messed with this go kart, so I can't remember without reassembling it. But one way or another, there's a spring that may be slightly larger, which
connects the lever to the butterfly.
This valve is the one which is connected to the rod you described, which runs to the governor mechanism under the gas tank.
So basically, it's like a tug of war game. When you pull on the butterfly with the throttle arm lever (pic 1), the governor wins because it can overcome the tension of the spring (this is how it works to keep the engine in check. The tighter the spring, the higher the RPM). When you pull on the "Rod" that runs under the gas tank, you win the tug of war game, because you're pushing directly on it.
Try this sometime. Run the engine at normal idle speed (Somewhere around 1200 I believe?) and with 2 fingers, grab the rod that runs under the tank and gently start pulling it in the direction that makes the engine run faster and faster. The more the RPM climbs, the harder it's gonna get to keep that rod in place. This is the tug of war game I'm talking about. If you have any other questions, feel free to ask away. That's what people like me and Fabroman (who I remember learning a lot from a while back) use this forum for.. to help and share knowledge.