Hang on, I think I got it.
I see the mechanism now.
I figured you were right, it just did not make sense. Now I see it.
Either you are right for the wrong reason, or I am misreading your post. I can't tell which.
I am going to assume for now, you are misunderstanding the way the CF is wearing the thrust bearing. If I am wrong, I apologize.
But just for a minute consider this:
You are standing on a horizontal disk that is floating on a pool of water. Your feet are in straps that are bolted to the disk holding you down.
In front of you is a shaft that is also bolted to the disk sticking straight up.
On top of the shaft is a hinge with a bar hooked to it sticking out toward you.
Attached to that bar is another bar going straight down to the disk with a wooden block between the end of the shaft and the disk.
You grab the bar in front of you and start to pull down.
The wooden block begins to crush.
You pull so hard that you completely crush the block, and your feet would come off the disk if they were not strapped down.
Does the disk you are standing on settle any deeper in the water?
No, because you are not pushing the disk deeper, you are just increasing the pressure the lever, attached to the disk, is putting on the surface of the disk.
And in just the same way, a weight mounted on the flywheel, acting through a pivot mounted on the flywheel, clamping a disk harder to the same flywheel, cannot move that flywheel axially.
BUT, and here is the part I cannot tell from your writing, the key is that the weights DO NOT move axially.
They PIVOT.
In other words, they swing up away from the flywheel when the rpm increases.
THAT is an axial motion!!