It was already fixed back when domain names had to be plain ASCII.
It was West-centric, yes, but it allowed for a unique and legible ASCII identifiers. And encouraged non-ASCII languages to create a unique (or, mostly-unique) Latin representation of their scripts — which is, in general, a good thing. It encouraged unification, using ASCII as the common ground.
Allowing for Unicode characters opened a new Pandora box, creating a situation that is unsolvable — either we keep the new names, making almost every string of characters potentially ambiguous, or we return to the state where ASCII-only names are the only ones usable.
Also, differentiating between ASCII and non-ASCII names doesn't solve the thing. Imagine what if the legitimate address is already in a non-ASCII script.
It was West-centric, yes, but it allowed for a unique and legible ASCII identifiers. And encouraged non-ASCII languages to create a unique (or, mostly-unique) Latin representation of their scripts — which is, in general, a good thing. It encouraged unification, using ASCII as the common ground.
Allowing for Unicode characters opened a new Pandora box, creating a situation that is unsolvable — either we keep the new names, making almost every string of characters potentially ambiguous, or we return to the state where ASCII-only names are the only ones usable.
Also, differentiating between ASCII and non-ASCII names doesn't solve the thing. Imagine what if the legitimate address is already in a non-ASCII script.