Internationalised Domain Names
Couldn't there be a prefix to the domain name transmitted to the DNS to specify "this sequence of bytes represents Unicode text, not ASCII", to allow any unicode text to be used as a domain name. Existing ASCII records would need to be converted to Unicode, but that would be a trviial change, except for the added disk space required to store the larger text strings.
Personally, i think that gTLDs hould be scrapped altogether, witht eh exception of .ORG, and .ARPA. a .UN TLD can be used for all UN sites. Every other site would be under a ccTLD, and operates soley under that countrys laws. THus any business which is conducted on a .RU domain which contravenes US law but is legal in Russia is legal no matter where the the person on either end might physically be lcated, because they would be considered to have temporarily teleported to the country where the domain name is registered to sign any contracts made. if goods are purchased, the position should be the same as if I had gone to, Country A to place a contract with a person from Country B to supply me with goods from the Country C, for which I will pay by transferring money from my bank account in counrty D to his in Country E. This solves issues of juristiction in internet crimes and civil matters such as IP violations. It also sorts out taxation and otehr government regulation of web activity.