Non-English Domain Names Likely Delayed

Unfortunately, the problem is inherent in human writing systems.
Consider and

And people are no better than muppets in ensuring they don't
screw themselves up

The good news is that fairly simple homograph rules can be applied

Rules aren't safe, it involves humans.

I presume that if a Chinese bank were to register their name then the
similar .com would be blocked for them (just as the Chinese paypal
alike would be blocked). What if the .com is a blogger, would the
Chinese bank accept being blocked, would they exert pressure to have
theirs anyway or would the blogger be fair game for lawyers/ICANN
managed domain hijacking?

"If it's too hard people won't understand it"