I would definitely admire your observation @omron. Governor gears were, however, identical; there is probably some specific light angle which is making the old one look flat; they both were round (just checked the old one after your email).
Any how real culprit was the carburetor; a few months ago my gen's engine fan broke at night and it got overheated causing a lot of plastic parts to melt; carburetor's throttle knob also melted and was not moving the way governor was trying to move it. Today I replaced the carburetor and everything is fine now.
One thing which is bothering me is that I have to fully choke the engine for starting; once it starts, it can run on half choke. NG pressure in my area is very good; what could be the reason that I need to use choke. Any help/idea?