Assuming you have a first focal plane scope, and a mil/mil setup, who cares how many inches a mil equals at any distance?
Yes, this. (Although it doesn't have to be a first focal plane scope, second focal plane works fine too.) Drop & wind holds should all be in mil (or moa), not inches.
The one time when you do need to use inches is when ranging targets; you need to know the target size to calculate the distance. That's a simple formula though.
Well, that's true with a caveat.. Second focal plane scopes have the capability I described - but only at ONE magnification setting. First focal plane scopes are consistent throughout their magnification range. On a FFP scope, you can use your reticle to measure on any mag setting.. second focal plane - read the manual and it will tell you which setting to place the scope on for using the reticle. Sometimes it's the scope's highest magnification setting.. sometimes it's a different one.
On your second point: Yep.. agreed. I didn't touch on that because I don't use my reticle for ranging.. but you are right.