Yes - the bottom line is that YOU decide what a unit is. I you are writing a flight sim then maybe i unit is 1km if you are writing an ant game then maybe one unit is 1mm.
However once you decide you need to make sure everything is modelled, sized (or scaled and positioned based on those definitions.
You might still want to avoid hard coding values and use constants so you can tweak forces and things later. eg. 9.8 m/s^2 maybe correct for the real world but sometimes it just feels to fast in a game and maybe you want to balance playability with realism. Its much easier if constants like this exist only in one place.
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