While I get it... there are plenty of risks just with high characters in domain names. I would simply suggest the "hover" view for links don't show the translated punycode character encoding for domains.

I think it would be far more of an issue if .lan or .local were ever able to make it past icann for a registrar. What's funny to me, is the number of web forms that haven't been updated to allow anything other than .com/net/org for signup.