Dear David,
I've never measured the cassette and didn't know it was an inch, which is, as you say, an interesting fact.
Here's a suggestion, though. With most lathes of that era, there were separate gear sets for metric and imperial. As a microscope manufacturer, Leitz would have had most of their machine tools set up for imperial, because that was the standard -- just as we use 1-3/8 inch film (half of 2-3/4 inch Kodak film, slit and perforated) and cut-film registration is standardized in inches. For that matter, the standard tripod socket threads are 1/4 inch and 3/8 inch.
If you load 5 feet dead, you're in effect knocking off two of the blank exposures at the beginning of the film, so the 'carelessness' theory has something to recommend it. On the other hand, so does sloppy translation: the original Focal Encyclopedia (1956) gives 'about 65 ins or 1.6 metres'; they also refer to 'unspooled bulk lengths of 25, 50 or 100 feet, or of 5, 10, 25 or 30 metres' (page 1070) and we may fairly assume that metric bulk loads were more normal on the continent. Somewhere I have a sealed, German-market 1936 tin of Agfa 35mm film and when I find it again I'll check the nominal length.
Cheers,
R.