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This seems like the wrong advice. For specifications dealing directly with domains we'd want them to reuse https://url.spec.whatwg.org/#host-parsing. At some point that ends up using IDNA2008 by way of UTS46, but with a lot of caveats.

@xfq Our BPs should reflect @annevk's comment. Can you suggest text before next week's telecon (2024-10-31) or do you need more time?

Sorry, I just saw this. We can change the text to something like this:

Specifications dealing with domains directly should refer to the IDNA algorithms in [[URL]], instead of IDNA2008 (from [[RFC5890]] to [[RFC5893]]) or IDNA2003 (from [[RFC3940]] to [[RFC3942]].

What is the reason for not using IDNA2008 directly? Is the rationale recorded somewhere?

IDNA2008 is not what's actually implemented. UTS46 has quite a bit to say about it, which is referenced from URL.