Olaj,
Great you are reading Mr Cutts' blog. I had a small conversation with him in the USA before. For sure, he can not remember my name because he is always surrounded by many webmasters.
If I remember right, the current implementation is only about removing the non-ascii, did not replace them with suitable alternatives. We are about to invite some other developers to join us for development, hopefully some people from community can help to improve this.
Regards,
Vincent
Kooboo Team