The disadvantage of HTML entities (such as š) is that they can only be used in, well..., HTML. That means the templates.
The advantage is that they consist of nothing but ASCII characters, so they are always displayed the same way.
By contrast, the advantage of UTF-8 characters is that they are easy to understand. Kiša is more intuitive than Ki%scaran;a.
The disadvantage is they require that software be told what the encoding is. Many text editors don't handle this well.
So, WeeWX uses entities where it can (the templates), and UTF-8 elsewhere.
-tk
-tk