1967 ASCII anticipated that, with dual-use character shapes so you could type o BS " → ö

But then people invented video terminals that didn't overstrike.

ASCII doesn't have have all the punctuation regularly used in English.

ASCII doesn't have a direct representation of all the punctuation used in English print, like 66 99 quotes, and different kinds of dashes (distinct from minus). For non-print, it's entirely fine.

Typesetting should be handled by a markup language anyway. Adding a few characters to Notepad doesn't create a typesetting system. A typesetting system needs to be able to do kerning, ligatures, justification. Not to mention bold, italics, and different fonts.

Why would print be different here? A screen is as much "print" as a paper is these days.

Choosing correct punctuation is not typesetting, either.