Brian Krebs writes on how browsers choose to display IDN. The issue here is of course spoofing valid URLs with visually similar letters. You probably would notice the lame attempt in the department line but some of the international characters are very similar or indeed identical. Depending on your personal preferences it might be a good idea to use punycode instead. Could save you a headache later.
https://krebsonsecurity.com/2018/03/look-alike-domains-and-visual-confusion/
Here are some of the applicable RFCs:
(Score: 2) by requerdanos on Monday March 12 2018, @04:41PM
Purpose of DNS [business.com]: Translate unique easy-to-remember words or phrases to harder-to-remember IP addresses.
Number of onion domains that are easy-to-remember words or phrases: ~= 0 [imgur.com]
Number of onion domains that are indisputably easier to remember than arbitrary IP addresses: ~= 0 [imgur.com]
Scores (Any "No" means "Fails to provide functionality of DNS"):
Do onion domains provide unique mapping? Yes, the mapping is unambiguous.
Do onion domains provide easily memorable words/phrases? No, although onion domains may contain words or phrases as components, the domains themselves are either gibberish, gibberish+word(s), or word(s)+gibberish.
Do onion domains translate the domain to an IP address or other appropriate record type? Yes, but the IP address may well be easier to remember.
∴ Onion domains provide functionality of DNS? No. If there were no DNS and the world had to use onion or nothing, it's debatable which would win out. Slight edge to onion for potential to support things like MX records which bare IP addresses don't address; but then you'd be edging back into DNS territory.
Analysis: Like the unreadable punycode-gibberish solution, an unreadable onion-gibberish solution proposes to replace readable names of sites with gibberish, arguably with the goal of of improving the system, but unable to do so because of the fatal flaw of being made of unintelligible gibberish by design. Our current system has serious problems, but introducing additional problems such as removing human-readability is no improvement nor solution.