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The same service already exists for almost 2 years on the web. Traduwiki.org is a translation tool designed for group and organization purposes. Functionalities are the same. Google isn't innovating on this one.

[20 June 2009. Additional comment from Thuan in response to a question from Seb: "Traduwiki is more a tool than a translation engine. People translate and correct texts in a wiki/group way. While automatic translation engine might be powerful tools in the future, linguists and translation experts rely on their human brain
and we help them doing their job better."]

Similar services like http://www.jollo.com existed for a while already. The concept of crowdsourcing for translations is a very powerful concept.

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