If you remember what was the encodings situation before UTF-8 became the norm... Let's say it was really ugly. E.g. there were at least two popular encodings for Russian Cyrillic letters — CP1251 and KOI8-R, and it was _very_ common for applications getting it wrong. Restricting things like passwords (and ideally even file names) to ASCII this was a practical necessity rather than an inconvenience.
Well yes, but you can process all passwords as UTF-8, as most of strings are in mac/iOS anyways, to avoid these problems. Then just don’t break an established standard like the keyboard layout. Is that too much to ask for in 2026?
It was hard enough to spell Français correctly.
Unicode was introduced to solve that very problem, and it largely does.
In the olden times, even ASCII wasn’t necessarily a safe bet, as many countries used their own slight variation of ASCII. For example, Japan had the Yen sign in place of the backslash. In a fictional ASCII world, Apple could have decided to remove the Yen key from the Japanese lockscreen keyboard.