It's hackish, but you can do Unicode in LaTeX with the inputenc and ucs packages. If you do:
\usepackage[utf8x]{inputenc}
\usepackage{ucs}
then the inputenc macro package does a first pass on the document, handing off all non-ASCII characters to ucs to replace them with LaTeX commands to generate the appropriate characters, if supported. So, ö gets replaced by \"{o}, א gets replaced with \hebalef, etc. Doesn't work for everything, but handles a good portion of common languages.