You've got the right intuition here. The unitless part is key for several reasons. It means that the number itself is meaningful. In your example, the ratio of 1.7 long/wide would be the same no matter what units used to make the measurement. (Obviously, the units DO have to actually cancel cm/inches doesn't work). The number for the speed of light (299 792 458 m/s) is a defined property, so that number doesn't
mean anything deeply. However, 1/137... itself is directly meaningful. This is why people who work in fundamental constant research use dimensionless ratios.
Now for a piece that's more interesting. The fine-structure constant (alpha) is the coupling constant that sets the strength of electromagnetism. This means that its value is the thing that matters in the equation: e^2/\hbar c. Each of the other values is a derived quantity. Further, to speak a bit loosely, only changes in alpha matter -- in the sense that if the speed of light (c) changes, but the other constants (e and \hbar) change in a way that keeps alpha the same, then you wouldn't be able to tell with an experiment that anything has changed.
Contrast this situation w/ a change in alpha -- a table-top experiment would be able to detect the change (given that it's large enough, and we have methods of measuring changes on year-time scales that are a few parts in ~10^-18 (Rosenband, 2008)), as it would mean that physics has changed in a fundamental way.
http://phys.columbia.edu/~millis/1900/readings/Science-2008-...