Who cares what validators say. You should use UTF. We're long past the point where web browsers don't support it.
If you want to create accessible websites, one of the first requirements is validated code.
If we ignore validators and the W3C, who is there to officially tell us what we _should_ do?
We are long past the point, sure, so much so, that W3C recommends it too.
And about browser support: If you want to guarantee that most browsers understand and support your code, your best bet is to adhere to the W3C that wrote the standard.
Maybe your webserver is not serving your page as UTF-8?