We didn't doubt that they would, but the ICANN has officially approved non-Latin character domain names. The pleasant surprise is that the system and guidelines for these internationalised domain names (IDNs) look pretty solid, even if hiccups are expected.
One of the key part of the IDNs renders all those fears about our precious dot-coms being invaded by shady, foreign characters for naught, because only country-specific domain names, those with two letter designations such as .cn or .ae, are affected by this approval. There are also some very specific restrictions on which languages qualify:
ICANN has set some language restrictions for IDNs: they must be in an official language of a country or territory and have legal status or at minimum "serve as a language of administration."
Implementation of the internationalised domain names will be gradual, with the application process beginning mid-November and documentation being flung out to developers now. Despite being limited to country-specific domain names, IDNs could bring huge changes, assuming that developers do in fact choose to support them. [Network World via Slashdot]