That sound more like an anti-feature resulting in unstable programs that almost work.
Either way, a complete rewrite of the text handling functionality should give you flawless functionality. At this point in time, all the important ecosystems that use UTF-8 are almost there.
This is very different from the other encodings where a complete rewrite of the text handling functionality is needed just not to fail every time. That made all the important ecosystems that used other encodings to get almost there much sooner, but there was an important period when everything was broken, and the improvements are much slower nowadays, because when you need to fix every aspect of something, iterations take much more labor.
It's both. It will generally ignore non-ascii data, but that is very commonly something you don't care about, in which case it's a net advantage over plain not working at all.
* all content will increase significantly in size using utf32 (utf16 is also variable-size, and markups being extremely common and usually ascii, while utf8 is not a guaranteed winner against 16 it often is)
* unicode itself is variable-size encoding due to combining code points, so a fixed-size encoding really doesn’t net you anything