well, i know the .biz (to which i am affiliated), and .org both
support punycode today... i am unsure how much use it sees, FWIW.
Wikipedia implies pretty broad support, esp. wrt ccTLDs [2]
punycode only applies to the domain portion of the production.
the EAI working group [1] at IETF is addressing more the user-part of
the production. work remains to be done there.
=peterd
[1] http://www.ietf.org/html.charters/eai-charter.html
[2] http://en.wikipedia.org/wiki/Internationalized_domain_name