I doubt it's exactly insensitive in the way that's described in the article, because it's still likely deterministic, whereas in the article the behavior can be nondeterministic.
I'm having a trouble thinking of an example in German, but in Spanish, there are plenty of words that differ only by an accent mark: "papá" and "papa", "tú" and "tu", etc. I'm guessing that any given dictionary would still treat these identical-but-for-diacritic words consistently throughout the dictionary, rather than sometimes placing the one with the umlaut first and sometimes placing the one with the umlaut second.