Translation is working fine when translating through views - however, for translators it is often easier for them to work through the string translation interface (so they can search for strings without needing to understand too much about the structure of the site).

Translation through the string interface doesn't show up on the site however. This is because the translations have not been incorporated into the views cache. The fix would be for i18nviews to detect views string translation saves and clear the views cache.