I don't think this is strictly a technical problem, at least not when it happens in international contexts (it's inexcusable for your own country's authorities to not be able to record your actual culturally-specific name).
The reality is that there is a limited char set that is actually understandable at an international level, and it's not that different from ASCII. Even with paper systems, if you go to Rome to sign into a hotel and you give your name as 依诺, they will not be able to even write it down, nevermind pronounce it. And even if you tell them it's Yī Nuò, they will likely ignore the accents since they won't know what those mean. Similarly, if you go to China and say your name is Sângeorz-Băi, they will not know what the diacritics mean and will not be easily able to write them down.
In all times in history, when multiple cultures interact, they have to find a common subset of their languages to communicate in, and that includes names. The situation in writing is actually much much better, even if limitted to ASCII, than it is in actual spoken language. Maybe you can write my name down perfectly (Simionescu), but I would bet you won't use the proper pronunciation unless you happen to know Romanian - you will likely use different vowels and consonants.
The reality is that there is a limited char set that is actually understandable at an international level, and it's not that different from ASCII. Even with paper systems, if you go to Rome to sign into a hotel and you give your name as 依诺, they will not be able to even write it down, nevermind pronounce it. And even if you tell them it's Yī Nuò, they will likely ignore the accents since they won't know what those mean. Similarly, if you go to China and say your name is Sângeorz-Băi, they will not know what the diacritics mean and will not be easily able to write them down.
In all times in history, when multiple cultures interact, they have to find a common subset of their languages to communicate in, and that includes names. The situation in writing is actually much much better, even if limitted to ASCII, than it is in actual spoken language. Maybe you can write my name down perfectly (Simionescu), but I would bet you won't use the proper pronunciation unless you happen to know Romanian - you will likely use different vowels and consonants.