This would be wonderful to have solved -- it's on our priority list but unfortunately keeps getting bumped by other things. I apologize for our lack of capabilities on this; believe it or not, when OJS 2.0 was released, pretty much everything was single-locale only; author/user names are one of the few major holdouts. @shoorick, the problem isn't Latin-centricism -- you could equally easily use Cyrillic as Latin -- it's the requirement to choose a single one for author name fields.
Note that we've recently added support for locale variants in translations, meaning we can now support e.g. Cyrillic and Latin variants of a single language. That doesn't resolve this issue, but is a step in the right direction.
@shoorick, we'd love to help groom third-party work for inclusion in future releases -- that's an ideal free/open source story. If that code is ready for a pull request and code review, please let me know! We're likelier to add this to OJS 3.x than to OJS 2.x -- it's going to be an invasive feature addition with some messy upgrade script implications, and we're trying not to disrupt the OJS 2.x codebase while we focus on OJS 3.x. (One option would be to refine this work on OJS 2.x and maintain it as an available but unofficial patch, then work with us to forward-port it for formal release in OJS 3.x.)
Public Knowledge Project Team