Why? Because the distinction between an IDN and a regular domain is about to disappear.
Most people didn't notice IDNs before IE7, and they won't notice them for sure after IE7.
All that remains is simply, domains, and now, domains can come in various languages. That's all. Just as it should have been.
Nobody talks of 'multilingual file names' anymore. They just use them.
The same thing is about to happend to domain names.
Another way to look at this:
Francais.com is a typo or misspelling domain of Fran�ais.com.
Yandex.com is a transliterated (and therefore of little value) version of ??????.com.
What is kami.jp worth compared to ?.jp? Not much. Possibly, just a "cool" Latin letter domain for branding purposes.
What is BJFDC.com worth now that we have ?????.com? Nothing. Zero.
Typos, misspellings, transliterations, and everthing else, like pinyin abbreviations, will be priced at what they are: close to worthless in most cases.
Most people don't know there is a domain market, but most people who are aware of the internet know what a domain is.
On the other hand, IDN is a useless nerd distinction for an enabling technology. A term that is outliving its usefullness as we speak, as that technology becomes mainstream and part of the domain name system used by everyone.
I noticied in IE7 some characters where left out. This spells doom for a big chunk of my IDN's but they still can be submitted to the search engines to be seen in the native characters