And again, I don't think Java probably needed 'char' at all, it's the sort of low-level implementation detail Java has been trying to escape from so this is a needless self-inflicted wound. I think there's a char in Java for the reason it has both increment operators - C does it and Java wants to look like C so as not to scare the C programmers.
C's unsigned char could just be named "byte" and if signed char must exist, call that "signed byte". The old C standard actually pretends these are characters, which of course today they clearly aren't which is why this is a thread about UTF-8. I don't have any objection to a byte type especially in a low-level language.
Presumably your Rust annoyance is related to things like String::insert? But I don't understand how this problem arises, if you are inserting characters at random positions in a String, that's just going to be nonsense. I can't conceive of a situation where I want to insert characters (or sub-strings) unless I know where they're supposed to go exactly relative to what is in the string already, whereupon it won't panic.
Compare for example decryption, where we learned not to provide decrypt(someBytes) and checkIntegrity(someBytes) even though that's what People often want, it's a bad idea. Instead we provide decrypt(wholeBlock) and you can't call it until you've got a whole block we can do integrity checks on, it fails without releasing bogus plaintext if the block was tampered with. An entire class of stupid bugs becomes impossible.
Java should have provided APIs that work on Strings, and said if you think you care about the things Strings are made up of, either you need a suitable third party API (e.g. text rendering, spelling) or you want bytes because that's how Strings are encoded for transmission over the network or storage on disk. You don't want to treat the string as a series of "characters" because they aren't.
The idea that a String is just a vector of characters is wrong, that's not what it is at all. A very low level language like C, C++ or Rust can be excused for exposing something like that, because it's necessary to the low-level machinery, but almost nobody should be programming that layer.
Imagine if Java insisted on acting as though your Java references were numbers and that it could make sense to add them together. Sure in fact they are pointers, and the pointer is an integral type and so you could mechanically add them together, but that's nonsense, you would never write code that needs to do this in Java.
K&R C claimed that char isn't just for representing "ASCII" (which wasn't at that time set in stone as the encoding you'll be using) but for representing the characters on the system you're programming regardless of whether they're ASCII. 'A' wasn't defined as 65 but as whatever the code happens to be for A on your computer. Presumably the current ISO C doesn't make the same foolish claim.
C’s character type, FWIW, has a use: it more or less indicates the granularity that is efficiently addressable by the host architecture. Trying to use it for more than that is generally not that fruitful, but it definitely has a purpose and it’s pretty good at that.
Finally, speaking of unfortunate decisions, Rust happens to make one that I don’t particularly like: it lets you misalign characters (and panics), which is…not great. It would be much nicer if the view just don’t let you do this unless you specifically asked for bytes or something.