HEI Ignition Coils

Yes, rev limit is done. RPM is measured from time between cylinder events. On a V8 that is 90 deg of crank rotation. It "cuts" as necessary if above, "back in" below... user indicates with shift light.
With fuel injection fuel is cut. On ignition only, best retard timing so fuel is burned late. With programable advance, that is easily done in timing map. It is also possible to cut coil "on" as a top limit.
The rev limit operation very smooth, engine just stays there, won't go faster.