When John Smithers edited [this post][1], I noticed that it works if you escape the unicode character. So http://linus.unnebäck.se actually works. The markdown source for this is `http://linus.unnebäck.se`. It's still just a workaround, but better than those `xn--bla-xyz` things.

Since SO takes a whitelisting approach to characters in links, I suspect there won't be a change anytime soon; especially since Jeff is notorious for talking about "crazy moon language" for umlauts et al. But I agree it would be nice.

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**Epilogue**: Seven weeks after I wrote this, Jeff hired me – and it only took me a little over five years to make good on the "it would be nice" thing. And umlauts and ASCII characters lived together in harmony and [happily ever after](https://meta.stackexchange.com/questions/21147/non-ascii-characters-in-external-links/259980#259980).

  [1]: https://meta.stackexchange.com/questions/37328/my-godits-full-of-unicorns/37357#37357