The problem with transliterations is that they will also take out accented characters. I don’t want to force people away from using their own name. Names like Björk Guðmundsdóttir, 毛泽东, or Борис Николаевич Ельцин [1]. Those would not pass any transliteration system.

That’s what makes it a headscratcher. I don’t want it easy for people to spoof things, so whitespace and letterlikes have to be normalised, but that doesn’t mean they should be limited to ASCII (or Latin-1).

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[1]: Names taken from the W3C’s article on personal names around the world, http://www.w3.org/International/questions/qa-personal-names