Best practices related to IDN

Hi all,

at the Internationalization Working Group meeting in October (part of W3C TPAC) I was asked by I18N WG participants about our best practices. In particular it seems that we recommend the use of IRIs, that is non ASCII characters in the path part, but not IDNs, that is non ASCII in the domain part. That means:

1) The following is not recommended
http://example.本屋さん.com/作家/夏目漱��

2) The following is recommended 
http://example.japanese-book-store.com/作家/夏目漱��

Is this really our latest thinking? If yes, that is the rationale behind this?

Thanks,

Felix