Anything you want it to read 
I knew that the xyz is a placeholder.

It was the purpose i did not understand: is it scoping xyz, or xyz is a command, or alias?
For sure you can. It exist for a while now (if even for Delphi compatibility) and it is even possible to compile the RTL/FCL using dotted units. As mentioned by MarkMLI there are some issues under certain conditions.
edit: dotted units in 3.0.0, reference manual, wiki dotted RTL
I see, thanks. I did not know this.
Sure, here we go.
Main unit (prg.pas):
program prg;
uses myproc in 'myproc.xyz.pas'; // I initially forgot to mention that the filename also needs to include the .pas extension
begin myproc.myproc(1,false) end.
Library unit (myproc.xyz.pas):
unit myproc.xyz;
interface
type TMyProc=procedure(a:integer;b:boolean);
var myproc:TMyProc;
implementation
end.
Okay, i get it now, thank you. Unfortunately this will not make it for me, as i either have to call the unit in with it's filename, or full name. Which means this is not a drop in replacement, since i don't have to do this with the original unit.
But... if it is a drop in replacement then how did they go about it then ?
Nohow, that is why i opened this topic.

You can always opt to use a 'forwarding' unit, e.g. a unit that is only referring to another unit with contains the actual procedures variables and types. But also there is the same issue of name collision.
Well, not the same; if i understood you, you meant that unit
A has the original unit name and calls in unit
B which has the original variable name, which is also
A. This should work, but unfortunately this will mean, that i have to refer to it as
B.A, because
A.A does not exist and simply
A will mean the unit. Which means this is also not a drop in replacement.
The wrapper function is the best solution so far.
