GregLocock,
Not trying to be pedantic (and I could have this totally wrong, anyway!)- but ...
Your maths is fine, but my point is that you don't add the mass terms to the mass-moment-of-inertia terms. Instead, these terms get multiplied by other terms to derive yet further terms. They don't get directly added together (or subtracted from each other) until they have been multiplied by other terms to derive terms with the same units (force, moment, stiffness, displacement, rotation, acceleration, etc). If one force (moment, displacement, ...) is x times bigger than another force (moment, ...) in SI units, it would still be x times bigger in any other consistent unit set.
I thought that when solving matrices, the problem arises when you add or subtract terms of significantly different magnitude, leading to numeric truncation or round-off. Multiplying and dividing terms with very different magnitudes shouldn't directly lead to round-off, as long as the resultant doesn't overflow or underflow the precision of the computer.
You can certainly generate round-off induced problems when the stiffness of adjacent elements is of significantly different magnitude (e.g. joining a very small element directly to a very large element, without a suitable intermediate graded mesh), because the equivalent stiffness terms are directly added and subtracted in the solution process, but the ratio of stiffnesses should be the same whatever unit system you adopt.
Anyway, I might have to have a bit of a think about it!