Zeokat you are totally right if you think deeper.
i prefer to exclude transliteration of username and keep standard chars.
for duplicates i have doubts about probability of any real use cases and if so you will manage it as the same way as without transliteration, you will manually modify the slug to be different.
example with 2 tags with the same name but differents color or icon.
may be a selective option to define d’herbe to appli transliteration after activation of the extension 😉
but il repeat: your logic is good 😀