I'd avoid the term "character", but I'd argue there are valid reasons to consume a Unicode string grapheme by grapheme. For example, a regex engine trying to match "e + combining_acute_accent" wants to match both the pre-combined version and the version that uses combining characters.
The main thrust of your point — that "length" without clarification of what measure of length is meaningless — I agree with.
The main thrust of your point — that "length" without clarification of what measure of length is meaningless — I agree with.