See w:Wikipedia:Village pump (proposals)#Make SidebarTranslate into a gadget for a discussion about a very interesting user-script (which I've been using and appreciating for a few months).
The script takes the interlanguage links, and
- translates them using the built-in title-text (thereby showing the English name for each), and
- adds a link to GoogleTranslate for each respective article (so with 1 click, I can see the German page machine-translated, for example).
The first aspect might be useful to think about integrating with ULS as a preference option.
The second aspect is very handy for power-users, but obviously couldn't be incorporated as a mediawiki default as it endorses a single service, and might lead to more newcomers trying to submit machine-translated articles (which is generally discouraged).
(Note that the script's js was rewritten a few weeks ago, so it should be extra-efficient and clean at the moment. :)
Thought for food.