I'm from Sweden and our lawyer submitted our I-129F with A's and O's instead of ÅÄÖ and we had no issues, even on the parts where it asked to write my name in the native alphabet and we got it approved. Then afterwards in the online DS-160 form it actually wouldn't even let us use the proper letter for most fields, but I was adamant that we use the ÅÄÖ on the part where they ask for names in native alphabet since ÅÄÖ is not A's and O's with accent marks but its on separate letter.
My interview is in a couple of weeks but I feel like if there would have been an issue it would have surfaced already.
Oh and we didn't translate any names for any of my employers. I remember being told that it's more important that the names are correct, not descriptive. We did however translate my job titles.