Living in an umlaut country like Germany umlaut domains are sometimes requested.
But: Umlaut domains resp. Internationalized Domain Names (IDN) are problematic.
My main pain points were these:
- Browsers tend to convert the unicode representations to ASCII Compatible Encoding (ACE) with punycode representations for security reasons when copying the url.
So you will get a nice surprise when pasting the url somewhere:
F.e. having https://hürth-blüht.de/ in the browsers address bar will get you https://xn--hrth-blht-q9ag.de/ on copy/paste.
This punycode representation is very unfamiliar to normal users and will keep them from clicking the url because it looks suspicious.