Display time is independent of lookup time.
Also, names that get transported in ACE form and converted back to Unicode for display would probably take on a ransom-note appearance when single-script strings get nameprepped into mixed-script strings.
I don't really know whether this kind of change is realistic.
I think not.
Would you care to elaborate?
You might as well ask why they should see domain names at all. Maybe there's a way to abstract domain names out of the users' view altogether, but until then, if users are going to see domain names, they want to be able to tell whether the name they see is the name they think they see.
Can't we solve the problem upstream?
We don't know how many misleading names have already been registered under .com and .net, so I don't see how we can completely solve the problem upstream.
Erik