I still feel like password fields for wallets in particular should just make things simple and only process ASCII characters (and leave any bytes over 0x7f the way they are). It's a very bad idea to try to normalize anything that looks like UTF-8 as it's going to be converted to bytes for hashing anyway. Plus it could cause bytes to be different from what the user intended to type on a Unicode keyboard, making the same password not work in different software, particularly if the same wallet file format is used in multiple wallets, or if you try to restore the wallet on a different OS that uses a different default encoding.