From the rumor debunking department (a highly understaffed department these days): Jeff Jarvis reports, "Blogger and its new parent, Google, need to fix something: Hoder, who started the blogging revolution in Iran, reports that the new Blogger doesn't support unicode." Not true. We've done a lot of work on encoding and internationalization. Here's a screenshot of the options. (We'll be adding more.) There may have been a bug causing Unicode to not show up at one time, I'm not sure. But that's what betas are for—thanks for the report.
And also (I missed this the first time on Hoder's post): "Some have even gone further and related it to the corrupt former-president of Iran, Akbar Rafsanjani, and said that maybe he had paid Blogger to stop serving Persian speaking people." That's awesome.