Unicode domains are nice, because it's always frustrating to have to misspell words just to make them fit within ASCII for no good reason (other than technical) but it really should have been handled in a better way, both on the technical side (punycode is ugly and scary for everyone) and the administrative side (it's actually not that difficult to handle phishing or to semi-automatically attribute domains with accents to the existing owners of the equivalent domains without accents, for example, at least for most European languages).
But this is no good, as in many cases accented and not-accented words mean different things. In italian àncora means anchor and ancòra means still, why would àncora.it (say a big company producing naval anchors) get the rights to own also ancòra.it (which could be an interesting name for a blog, a political journal, etc.)?
Later browsers decided to show punycode in the URL bar instead of the decoded value in an effort to fight phishing until "they have a better solution". e.g.
That said, a lot of people are using emojis every day in their communication... seems pretty normal that they'd use them in domains as well, right?
Many use memes and photos in their communication daily too, so should we have picture domains? www.[some bitmap in base64].com?
This unicode domains come with many hazards (phishing, domain hacking, different characters w/ identical form) and inconveniencies (input, blind people not seeing the emoji) and are provided just for the ohs and wows without any concrete benefit to balance these problems.
Except for, you know, being able to have a domain in your naive script, which some of the billions of speakers of languages with non-Latin orthographies might like to do.