A proposal for better security with domain names:
The domain name system has been around for decades and it's a clever and proven system. It can – and should be – taught in school and, arguably, knowledge of it is, while not difficult to obtain, essential in our times. Additional ambiguity in this is probably not what we want.
Arguably, the most sincere problems arise from mixed alphabets with Unicode domains and look-alike characters/glyphs. This could be addressed by a) going back to codepages (Unicode subranges) and defining a valid subset for each range, and b) enforcing a domain name (hostname and domain) to be in a single codepage. Clients should derive the codepage by the Unicode range and generate a codepage-identifier, which may be displayed as a badge, identifying the respective range. And, of course, any mixed domains should be regarded illegal and invalid. (We may even want to make this codepage-identifier a mandatory particle of any URI, preceding the hostname.)