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I recently had a discussion with gabor, plach, jose and webchick about internationalization in the config system. The summary of this discussion has been posted at http://groups.drupal.org/node/185609.
This meta-issue will track the coding needed to be done to accomplish this. While talking is still going on, it seems likely that at least the following will need to happen.
- XML file names need to include some information about language and possibly locale
- These files will only contain the translated or internationalized data
- When loaded into the active store, the internationalized data needs to be merged with the default files
- We still need to figure out what to do about the problem of essentially needing one active store per language on multiple language sites.