Last time I tried (about a week ago), UTF-8 (specifically japanese) characters worked fine in URLs without any additional encoding. Even looked right in address bars across all browsers I tested with (Safari, Chrome and Firefox, all on Mac) and I have no idea what browser my girlfriend was using on windows. Aside from most windows installations i've run across just showing squares for japanese characters because they lack the required fonts to display them, it seems to work fine there as well.
The URL I tried is: http://www.webghoul.de.private-void.net/cache/black-f-with-あい-50.png (WMD does not seem to like it)
So it might not actually be allowed by the spec, for what i've seen it works well across the board, except maybe in editors that like the spec a lot ;-)
I wouldn't actually recommend using these types of characters in URLs, but I also wouldn't make it a first priority to "fix".