There's no reason not to have mm or cm if you have inches. If supported in your UI toolkit, px can be useful too. I'd also like to suggest em and/or points where appropriate.
I don't think that a user defined in-game unit is appropriate for defining the size of an out-of-game user interface element. (Would you normally think of your monitor as 6 fdasas wide and the Realm Works window 3?) It's doable, but weird to me. Then again, inches don't mean a whole lot either in terms of on-screen display.
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