Not having the rev limiter is worse as you'd probably see a big cloud of smoke if you didn't have it, but it ain't the best thing to do.
When you hit the rev limiter, you basically cut fuel to the engine. Now imagine starving an angry pony. It'll eventually either kick you or croak. Most likely do the first, then the latter. It should be ok if it only happens a few times, but I wouldn't want to make it a habit.
