Earlier quoted context omitted.
Text files growing by 8x would be a non-starter. It would be nice to standardize on something but what do you have against UTF8?
It's not bad, but it's complicated, as it requires an O(n) algorithm to jump to a specific character. Unicode should have been capped at 16 bits, and doubling text files in size is fine. An alternate representation of simplified UTF-8 would have kept compatibility with old ASCII files.
If you are trying to index into a string by "character" you are almost certainly already doing it wrong. Meaningful indexing almost always has to be by grapheme cluster. See Swift's string API as a great example of this done right.