Sometime its really hard to find differences between real and fake domain when scammers domain is almost same like original one. Specially for this one i can say that only few visitors will be able to detect this. I think domain providers can change their rules of domain selection and if they don't allow this kinda domains for their customers then phishing attempt will reduce for sure.
It's seems like something hard to do because internet access is now almost a global thing and also almost a human right. So if domain providers decided to block characters from certain alphabets like Arabic, Chinese, Cyrillic, Hebrew etc. I am very sure it would anger people who use such alphabets and would cause a global outrage more like this anti Racism movements you see everyday.
Browsers sometimes do try to protect users from such attacks by displaying such Domain Names in Punycode. For example
1. Opera Browser
2. Google Chrome