99% of the Chinese, Russian, Spanish, German or Japanese websites serves information using the language that people understand there. So it's not going to have any difference! Amazingly except Government Websites (gov.in, gov.nic.in) in India all .in and co.in's serves information in English! So it will be of no help for any one who don't know English (mere typing the web address will not serve the information in their language)! Going by the theory even if I manage to type timesonline.co.uk in Hindi, it will be of no help for me if I don't know the language in which the information is getting served from the address!
The only people who stands to benefit out of this are the localization guys! May be they have a big business here! Thanks to ICANN the much hyped IT industry, which is reinventing the same wheels again and again will have a new business to look for!
Take in case Hindi: Not every one understand traditional Hindi aka traditional Chinese so may be inventing Simplified Hindi may help like Simplified Chinese! For example on can visit this Page: http://www.google.co.in/intl/en_in/labs/suggest/about-hi-search_hi.html the language is easy to understand. However in the same page there is no Hindi for Transliteration! So here comes the bazooka! And same goes for Bengali etc etc etc.
More on this later.