@xpil internationalized domain names (aka. IDNs) are a hugely difficult subject.
On the one hand, yes they enable these kinds of attacks.
On the other hand, speakers of languages using alphabets different than plain ASCII should have the technical ability to use their alphabets and scripts online in full capacity.
There is no good, clear solution, still. Using punycode solves the security angle, but dramatically reduces usability for anyone using non-ASCII script. I.e. most of the world.
@rysiek @xpil fair enough, but they could make it default to true if the language interface uses roman alphabet, for instance... I'd think that this highly reduces both the security issue and the amount of people that would be annoyed