PostgreSQL is (IMHO) much better than MySQL but unfortunately it still lacks one of the greatest MySQL features: encoding.
Locale settings in MySQL are great. You can have different collation set for each database, table and even column (the same as it is in Interbase/Firebird). This gives the opportunity to simplify the database structure.
For example (I know, a very simplified example) when you have even a simple blog database and want to create a multilingual blog. Then it is enough to create one table for posts with two columns for body, each with different collation.