I am back from the ICANN conference in Lisbon and, I have the T-shirt to prove it :) At a meeting the BSI proposed to create a standard that will describe how a mandated list with a ccTLD for every country or territory is to be produced in other scripts. This would be an industry standard that would eventually be adopted by ISO. Having such a list would be truly beneficial to get to the stage where the registrars for these registries know what codes to use. I have been told that a list has already been compiled for the Arab and the Cyrillic script.
On the BBC-news website there was a great story that explains why it is so important to allow for content in the language that people speak ..
One other thing I learned is that you can already have a .org domain name that is in an UTF-8 script. To me this is quite important because it proves that supporting UTF-8 is something that can already be done. It would make such a difference if the Internet was as functional as it is for us people who read and write the Latin script.