it's not a high priority bug, but I suppose it could create confusion in many people.
If you create a domain like dömain.me (use ALT+0246 to do the ö ), the web panel will suggest to store it in the directory /home/username/main.me
OK. it's not a big issue if it can't convert those chars. The problem comes when you create another domain like thenewdömain.me, the web panel will tell you to store it in /home/username/main.me again!
This could be confusing for many people.