Yes, because the internet is not restricted to English letters.
Just imagine you had to visit アップル instead of apple.com! And most importantly, would you trust yourself to see the difference that and say プッアル consistently without seeing the real reference?
Just to be clear, I hate it when the browsers hides part of the url too. Show me the https god damn! But internationalization is a good thing, as it makes the internet accessible to more people.
People who use those characters benefit from it. I imagine 點看 is more useful than xn--c1yn36f to a Chinese person. That’s also why Google displays them that way.
It would be nice if browsers warned when International Domain Names were in use, and provided the option to disable punycode when first encountered.