There is no "if" about idn.idn coming. Its just on the horizon for late 2008, and 2009 on. Its clear that the rollout is fully budgeted and underway. It is also a given if you have kept up with IDN workshops, GNSO policy implementations etc.If the .idn extension arrives I feel that scenario is quite likely.
To clarify how idn.idn will effect idn.com, idn.net, idn.cc etc. Verisign will have the rights to the equivalent of idn.com in (whatever language) as idn.idn. Same will apply to existing country codes, etc. No one can step in with anything "strikingly or confusingly similar".
More links and information here, might be worth reading up on before the IDN train leaves the station.
http://en.wikipedia.org/wiki/International_Domain_Names
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