Hear hear. I too don't care much for the argument that Lua doesn't have unicode because C doesn't have unicode. For two reasons. First of all, Lua can be straightforwardly embedded into a host of other languages (for example, http://tinyurl.com/39qhxzw). Second, who in their right mind thought that a language designed for embedding into commercial applications shouldn't have good I18N? (And honestly, how in the world could someone from Brazil develop a programming language that doesn't even support their own spoken language? It's as if Ruby was developed by someone in Japan.)
A bit of history. From what I have gathered in its documentation, Lua steals quite unabashedly from NewtonScript. NewtonScript was a proto-style OO language developed in a hurry for the Newton when the Dylan language wasn't going to deliver. Like Lua, it's a language designed originally for an interpreter, which runs embedded in an outer C++ environment and must interoperate with it. But NewtonScript doesn't just use Unicode pervasively: it was the first major language to do so. And C++ interoperability with the language is just fine. So this Lua-needs-to-work-with-C-and-thus-can't-do-unicode thing is nonsense both in fact and precedent.
And while we're on the subject of NewtonScript: Lua's let's-almost-do-proto-style-OO-but-require-the-user-to-do-extra-work is really incredibly annoying. Lua should have had proto OO built into the language, like NewtonScript, and not just "available", in a hacked way, through its meta model. Lua wants to be more "general" than NewtonScript, but it just winds up being (IMO) rather less usable.