Yes it's just a plateau. But when all that acceleration goes away suddenly it certainly feels like a cut from within the car as from the occupant perspective there is deceleration due to the fact that acceleration ceased. At my auto-x last week I was riding the limiter for several seconds in a couple of spots as it wasn't worth upsetting the car trying to change gear. It is a weird feeling when the cut happens and it is even weirder how perfectly smooth it holds redline RPM, but it does its job correctly.
And yes technically speaking there is a power cut (engine cuts power to maintain constant RPM), but there is no deceleration of the vehicle itself.
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