IRI's in link lines

Should IRIs be allowed in link lines? This is a very real accessibility issue for non-anglophone content authors, who will not have to deal with URIs that are punycoded or %nn-coded or both. (Note: "xRI" means "absolute with no fragment", but "xRI reference" means "absolute or relative, with or without fragment".)

The cost of allowing link IRIs depends on the resolution of protocol#1, which is about protocol IRIs. If the protocol allows IRIs, then a client needs to be able to make relative IRI links into absolute IRIs, which does not require a full IRI library[*]. A server will probably keep content in directories and files named the same as their IRIs, and can provide them as such.

But if the protocol forbids IRIs, then the client needs to be able to convert IRI references to URIs, and the server has to make sure that it never sends an IRI.