Of course high constant high revving would cause engine damage. Engine siezure is possible, if the oil cannot lubricate fast enough or pump failure. Mismatched valve springs rates that cannot close on time with high cam. Piston ring failure can also cause damage.
In any case, all engines are manufactures higher spec/ built than specified in bochures. Particularly toyota engines. Because they have to use the same engine over many type of car bodies with different tuning. 4AGE in particular was used in so many corolla, levin, trueno, celica, MR2 and god know which variant in some countries?
Rev cut is there for engine protection, from the earlier mentioned faults.
Even if any of the above doesn't happen, the gearbox would fail. So does clutches. And RWD cars is the axle and LSD.