Ok, back to the technical side of the original question, if only to evaluate eventual business proposals of professional developers...
How would one go ahead implementing alternative scales for model space?
There's no single hook-up for inputting and reporting distances in .NET. Therefore the effort would involve monitoring all user input and object creation in respect to defined areas of alternative scale, as well as monitoring of object modification. In addition all standard commands that report lengths would need to be wrapped or completely redefined.
While I wouldn't say that it's impossible, it looks like pretty much work. I cannot say if there's something in ObjectARX that makes this task easier, but since commercial applications doing this seem to use custom objects it's likely. Why not buy one of those apps instead of starting from scratch?
PS Thanks, Jeff H, for showing a way for handling the user input. That's but a tiny part of it all.