WordPress.org

Why wouldn't I simply use urls like /%C7%E4%F0%E0%E2%EE%20% in them?

1. It's bad for your visitors. It's disrespectful and unprofessional because it doesn't look human. Some may even think they have been hacked or something(yup, there still are paranoic people out there :) )
2. It is bad for search engines. Let say someone writes the phrase "zdravo svet" on google and if you have your urls set up with this plugin then you will rank higher.

Why did you made this plugin?

Because I love my country Macedonia, MACEDONIA for the MACEDONIANS! :)