The only cases I can think of where entities/characters would matter are:
- A buggy reader that does not handle utf-8. (Or as a convenience for later edition.)
- Different entities being used for the same character in different situations, like #8217 and rsquo for the curly apostrophe / right single quote. If you convert to characters you lose the distinction, which may again affect later edition.
(I did get the joke.)
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