From the CENTR Statement on IDN Homograph Attacks:

[O]n 15 February 2005 the Mozilla Foundation announced it had a plan to disable IDNs by default in future versions of its web browsers. CENTR, a group of many of the world's domain registries - representing over 98% of domain registrations worldwide - believes such strong reactions are heavily detrimental to the effort to introduce non-English languages and scripts to the Internet, and could have lasting repercussions on the ongoing effort to internationalise the DNS. With this in mind, CENTR would like to make the following points....

The CENTR Statement is well worth reading if you've been following this thread.