> It sacrifices the ability to encode more than 21 bits, which I believe was done for compatibility with UTF-16: UTF-16’s awful “surrogate” mechanism can only express code units up to 2^21-1z
Yes, it is 'truncated' to the "UTF-16 accessible range":
* https://datatracker.ietf.org/doc/html/rfc3629#section-3
* https://en.wikipedia.org/wiki/UTF-8#History
Thompson's original design could handle up to six octets for each letter/symbol, with 31 bits of space: