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Phishers rejoice on the new variants of ebay.com and paypal.com they can now create!
This is a real concern, but browsers and registrars do have some protection against it. IE will render punycode except for scripts in the user's list of accepted languages. Many registrars enforce a no-homograph policy and Mozilla browsers will allow IDNs only from those registrars: http://www.mozilla.org/projects/security/tld-idn-policy-list...
As long as my browser still renders them in punycode by default, I suppose I'm okay with that.
My regex's are cringing already.
This is amusing, a somewhat related HN story (http://news.ycombinator.com/item?id=910071)

If there wasn't a latin language, I wonder how much longer it would've taken for humans to have such rich interactions with computers as we have today.

Not sure if locale specific URLs will take off or not, especially pointing toward the other HN article.

Maybe a computer-specific language would have been created, composed of whistles, beeps and chirps ;)