That's good in theory. The reality is that punycode never took off anywhere in the world.
Unless you're proposing we let it live in case someone somewhere ever uses it. Then, sure.
Unless you're proposing we let it live in case someone somewhere ever uses it. Then, sure.
Of course that registry actually has a sane punycode policy, so such impersonations are impossible there, whereas they're happening all the time in .com. Maybe time to re-evaluate your idea of "reality" versus "theory".