I'm going home now; here are some initial notes on choice of units and difficulties converting between inches and px.
pjrm.
Let us assume that in the produced SVG, there are no units other than px, except for the attributes of the <svg> element (width, height). This is inkscape's usual behaviour.
Before an SVG agent looks at an SVG document, it calculates a px/in value from its environment, e.g. by consulting the X server or a printer profile for a dpi value, and choosing an appropriate px/in value that would have an integer number of device dots per px.
The px/in value should vary according to expected viewing distance: around 120px/in for printers and around 90px/in for monitors. Because there should be an integral number of device dots per px, the px/in value may vary more than this for low-resolution devices, like 72px/in for a 72dpi monitor or printer, or 144px/in for a 144dpi printer.
When Inkscape offers to convert between px and inches, it currently assumes a fixed 90px/in. We could make this configurable for purposes of rendering and conversions, which helps if you're drawing for your own printer or screen, but doesn't help much if the document is to be rendered on many different monitors and printers: inkscape's conversions between px and inches can be out by sqrt(2) or more if the document is to be rendered both at 72px/in and at 144px/in (to use the examples of the previous paragraph).
If a document's <svg> element has a viewBox attribute and width & height attributes specified in real-world units (mm/in/pt/cm/pc), then we can say that the document's primary unit is real-world units. If the viewer has accurate dpi information, then the document can control lengths in real-world units (mm, inches), but cannot accurately control lengths in px.
If a document's <svg> element lacks a viewBox attribute or its width & height attributes are missing or specified in px, then we can say that the document's primary unit is px: the document can control lengths in px, but cannot accurately control lengths in real-world units like mm or inches.
An interesting possibility is to use em for the document's primary unit. Depending on how the initial size of an em is determined for svg, this might be good for people needing large fonts.
Varying needs: Eyesight (need for large fonts); actual device resolution; actual viewing distance; X server dpi setting.
Atypical viewing distances:
- Bill-boards.
- Wall projectors.
- Casual display for crowds, e.g. in cinema entrance hall, airport lounge, train station.
For people with poor eyesight that need larger fonts, neither real-world distances (mm) nor angular measures (reference px) are suitable.
In the case of a wall projector used for a typical presentation, true real-world lengths (mm on wall) are irrelevant. However, in this case the X server is typically misinformed about the device resolution: it will probably assume about 100dpi. Documents designed for viewing on a normal desktop monitor that use mm as the primary document unit will look too small. This case is similar to the poor-eyesight case (see below).
In some cases, it is practical for someone to apply custom scaling. In the wall-projected presentation case, the presenter may be able to import the SVG document into a presentation document and apply scaling. If the scaling is tweaked per presentation (differing projector or computer or X server settings) then any primary document unit can work fine. Similarly for the billboard case.
[Proportion of "page" (screen) may be a meaningful measure for this case, but that's complicated by non-squareness of page dimensions. The user could set the page width to be 100 of an arbitrarily-chosen unit (whether mm or px) and consider them as percentages.]
Users needing larger fonts (including the wall-projected presentation case) may configure their X server to assume a high dpi for normal X font rendering purposes, but this would be defeated by the integerization aspect of CSS px. I'd guess that most viewers would use 1 dot/px even if the X server claimed 180dpi. However, having mm as the primary document unit would result in scaling as desired.
A "reference px" is 1/90" at 28" viewing distance (typical screen distance), or 1/120" at 21" viewing distance (typical printed page distance) (http://www.w3.org/TR/REC-CSS2/syndata.html#length-units).
More generally, the reference px is 1/2520 of the viewing distance. (2520px/viewdist = 90px/in * 28in/viewdist = 120px/in * 21in/viewdist.)
The actual length of a px for a given viewing distance should be an integer number of device dots. E.g. on a 72dpi monitor, a px is 1/72". If the viewing distance is still 28" then a px is 125% of the size of a reference px: 2016px/viewdist.
A monitor from 1994 may be flickery at 1024x768, so one would usually use 800x600, giving about 60dpi. If 28" viewing distance then a mere 1700px/viewdist, but one might sometimes compensate for the small dpi by having a larger viewing distance, making the dots look smaller (more px/viewdist).
If the target devices have little disadvantage in "fractional number of dots" (e.g. printer >= (300dpi * 20in viewing distance), or greyscale screen >= (100dpi * 26in viewing distance)), then ideally use a unit like px but without the integerization.
Given that there is no such unit in SVG:
If we can assume a fairly fixed viewing distance (e.g. consider just on-screen or just printed page or just billboard), then use mm.
If the target output devices have fairly high dpi (so high dots per px), then the integerization doesn't have much effect, so px is a good choice.
If there isn't much "body-sized" or small text, or other fine detail (such as in icons), then scaling doesn't matter much.
Monitors with low dpi often also have a small viewing area, which suggests that mm is better than px.
Otherwise, use px.