an immediate thing to do is to declare cp65001 as an encoding:

Index: Lib/encodings/aliases.py
===================================================================
--- Lib/encodings/aliases.py    (revision 72757)
+++ Lib/encodings/aliases.py    (working copy)
@@ -511,6 +511,7 @@
     'utf8'               : 'utf_8',
     'utf8_ucs2'          : 'utf_8',
     'utf8_ucs4'          : 'utf_8',
+    'cp65001'            : 'utf_8',

     ## uu_codec codec
     #'uu'                 : 'uu_codec',

This is not enough unfortunately, because the win32 API function
WriteFile() returns the number of characters written, not the number of
(utf8) bytes:

>>> print("\u0124\u0102" + 'abc')
ĤĂabc
c
[44420 refs]
>>>

Additionally, there is a bug in the ReadFile, which returns an empty
string (and no error) when a non-ascii character is entered, which is
the behavior of an EOF condition...

Maybe the solution is to use the win32 console API directly...