[jesprenj]

Even us, users of IDN domains, still submit to the outdated and always present ASCII. Punycode is, after all, still ASCII and "real" UTF-8 characters are rarely and exceptionally seen in DNS.

It may be debated that with introduction of punycode, support for real accent and non ASCII characters was hindered.

https://pi.cr.yp.to/ experimented with UTF-8 in domain names before punycode and this will rarely ever work in the future, purely because now we have a half-solved problem with punycode and no one will bother to implement UTF-8 domains - it's would be ambiguous.