What's nonsensical about this definition of the order of a meromorphic function?

Yes, so Georges is correct. The definition is flawed. The correct definition is that that the order of $f$ is the largest integer $k$ so that you can express $f = g^k h$ in the local ring. There is no reason to expect $h$ to be a unit. (Great question, by the way. I'm embarrassed it took me so long.) See the various examples that @JulianRosen and I offered in the comments.