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On OS X, any command line which you type in is encoded
to what Terminal.app specifies.

If it is other than UTF-8, you will see broken display for
non-ASCII file names when listing them in Terminal.app.

If does not match with LANG, line editing in bash will be
somewhat useless for multi-byte characters.

In Japan, seasoned Unix users tend to use EUC-JP on
OS X, and they also tend to restrict their file names to
ASCII.  They use EUC-JP in their program sources,
LaTeX files, command messages, etc.  It has been a
long tradition how you use Unix in Japan since circa
1990.  Thus the broken display for non-ASCII file names
does not bother them.

Some newfangled Unix users use UTF-8 characters in
command line on OS X.  And many other OS X users,
who use national characters for their file names natullay,
do not use command line at all.

In theory, you can use some non-UTF8 encoding for a
non-ASCII file name in your command line.  However,
in practice for now, it seems very unlikely on OS X.