Character substitutions like ķeepass or ƙeepass or keypass are at least possible to spot if you know the name of the product, but not the full URL.
But there are many ways to create lookalike domains that don't change the product name: https://keepass.org https://keepass.net https://keepass.info https://keepass.cx https://keepassxc.org https://keepass-info.net https://keepass-manager.com
Which of these is the correct one? (It's https://keepassxc.org of course, but just looking at the URL won't tell you that.)
The root cause is downloading software you see advertised on Google even though that does not in any way establish trustworthiness.
This obscures how dramatically worse the situation is if you can't even trust display names. Does the ubuntu.com link on wikipedia lead to an ubuntu.com, or something entirely unrelated? Does a script you're reviewing actually pull images from debian.org, or somewhere else?
At some point you have no choice but to trust what they pixels on your screen are telling you.
Also, while I can agree that url are "security-critical", the same applies to email or even just names, and we definitely need Unicode for those.
Those of them who want to accept the security risk that comes with that should have the option to turn it on, but it shouldn't be on by default for the rest of us.
Maybe restricting those characters to the relevant top level domains? At least you'd notice you're on ķeepass[.]lv
They can install a browser plugin to convert punycode to their alphabet if they care so much for using it in URLs. There is no need to inflict this on peoples with safe alphabets. Alternately, highlight non-safe-ASCII-subset characters in a different color, as VS Code does.