This should be ON by default, in my opinion. Also, I believe Mozilla has a massive opportunity here to demarcate themselves as the more security-conscious browser vendor. “This phishing trick works on all major browsers except Firefox” would be great publicity material.
Turning it on by default would be a massive disservice to the work that domain registries and registrars have been doing to allow Unicode to be used in domain names. In Spanish speaking countries the ñ character is pretty ubiquitous for example, and the workaround of replacing it with an n creates many problems like misdirected web traffic and typos in email addresses. Unicode in URLs and domain names is a feature, abuse should be attacked by means other than disabling it.
FF Android redirects me to the real keepass page and I have no idea why :D
Lol are you sure?