While not directly Mozilla-related, I wanted to link to this open letter from the directors of all of the East Asian Internet registries to Rod Beckstrom, CEO of ICANN.
The issues brought up are:
1) IDN Variant Problem.
Essentially the East Asian languages need to have IDN Variant implemented or else people in East Asia who buy internationalized domains would have to pay multiple times for the same domain.
2) CJK Three Characters Problem.
The policy states that top-level domain “strings must be composed of three or more visually distinct letters or characters in the script” but that clearly isn’t appropriate for East Asian languages, where ideographs do not match equally with letters in an alphabet.
These are some of the challenges facing the Internationalization of the Internet, specifically at ICANN, but there are many other interesting examples elsewhere (input method editors being another huge hurdle.)