I see your point. But wouldn't this problem be better addressed with an additional field on one's passport, which states the name in a standardized alphabet, e.g. ASCII?
Asian passports seem to include something like this.
Most (all?) countries that use non-Latin alphabets include a romanized name for these reasons.
The only problem is that often there isn't a good clearly unambiguous set of rules on how to do that. For the forms, it doesn't matter, so long as the country chooses one and sticks with it. But it can mess up the pronunciation of your name real bad.
The passports contain such a field in the machine readable zone. It has created some confusion in the past, as the transformations ß -> ss and ä -> ae are pretty surprising if you never heard of that.
The only problem is that often there isn't a good clearly unambiguous set of rules on how to do that. For the forms, it doesn't matter, so long as the country chooses one and sticks with it. But it can mess up the pronunciation of your name real bad.