Earlier quoted context omitted.
the problem that arrives there almost instantly is that people want to see a list of filenames. If you're ever going to do some sort of "displaying" of data, you cannot store it as bytes. You need to know what characters things are supposed to be presented as. You could imagine not settling on a specific encoding, but you must know the encoding. Unless your plan is to show a list of numbers to users.
The filesystem can't be responsible for displaying anything, though. Displaying filenames is the job of the shell / window manager / etc. The filesystem is much better off handling filenames as a number of arbitrary bytes. Let people who want to put weird bytes in their filenames see ugly filenames along the lines of "\x00 Can you see this?"
Can they not read the filenames anymore because their shell/window manager is different?