What version of iOS are you running? I'm on 4.0.1, and all I see is "http://xn--ls8h.la/
4.3.3
You need to enable emoji. There are several free App store apps that will do it. One is Emoji Free! By Awesomest Inc.
You don't need an app. Just go to Settings > General > International > Keyboards and add the Emjoi keyboard.
That's the thing. I have emoji characters enabled, and can type and see them in text messages. It's odd I can't see them in Safari. Could it have something to do with my phone being jailbroken?