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Imagine that, instead of being created by Tim Berners-Lee, an Englishman working at CERN in Switzerland, the internet had been invented by Li Tsim, a Chinese researcher at Tsinghua university in Beijing.
Thus, the first web pages were all in Mandarin, and URLs were made up of Chinese characters. So today, every time you see a web address on an advertising hoarding, you have to spend five minutes carefully copying it down and then working out how to type it into your computer.
If this sounds like a nightmare, you can imagine how important it is to citizens of countries where the simple Latin alphabet is not used for them to surf the web using URLs in their own languages.
http://business.timesonline.co.uk/article/0,,13132-2076285,00.html
Found this one today. More on the importance of IDN.