Okay I guess. The reports I read made it sound as if steep dives pushed more air past the propeller forcing it to rev beyond limits and wreck the gearing. If the only thing to worry about is failed governors then I can see why its not in the game like that but if steep dives do in fact cause this sort of problem I would like to see that in the game just to make things a little bit tougher. 
Yes this can definitely happen in a dive as well as you've described. I could quibble with EDO about terminology of runaway props vs. overspeeding props, but no matter in either case the prop and crankshaft are spinning too fast that it wrecks the engine. For a propeller with a working governor you can conceptually overspeed the prop in a dive. This occurs though when blade pitch can longer be increased because it has hit the mechanical stops e.g. the oil piston driving the pitch is at it's maximum.
Before it reaches the mechanical stops however the governor will continue to adjust to keep RPM constant. As the airplane increases in velocity, the loading on the propeller lessens due to a lower relative blade aoa thanks to the increasing forward velocity. Lower blade aoa means lower torque loading on the propeller therefore it spins faster. This increases RPM on the crankshaft which changes the centrifugal force on the fly weights in the governor which causes the governor to pump more oil to increase blade pitch to increase the propeller loading. More loading on the propeller makes it harder for the engine to turn the prop thus slowing the RPM back down to the desired setting. That's what John Deakin's article that kvuo pointed out talks about.
Here's a schematic of the Hamilton Standard Hydromatic that many of our airplanes in AH used in real life and how it addresses the overspeeding I was describing in the paragraph above.

There is some increase in forward velocity however where we reach the mechanical stops. When this happens the governor can't increase the pitch of the propeller anymore to adjust for the lower propeller loading. Since the power loading keeps decreasing in this case with increasing velocity the prop and the crankshaft spins faster and faster. At some point the engine can't handle it any more and blows chunks

. As to modelling this, I have no idea if AH has an RPM limit on planes before the engine fails. Bear in mind though that in this particular case you can easily avoid ovespeeding the propeller by simply closing the throttle.