Well, most people when confronted with this will rename the directory to something simple like "ulib" and continue.
I don't really buy this "trick": what if you happen to have a home directory with Unicode characters in it ?
I think this is one of the most common places, too. Whenever I've come across unicode filenames it has been because the user has a unicode Windows username, so their 'home directory' (and temp directory, desktop folder, etc) does too. Convincing people to either change their username or to go through the fairly complicated process of moving these directories elsewhere generally isn't feasible.