The article I posted says that Skype is looking at tapping into it's users conversations to help it understand natural language and get more accurate. Basically "crowd sourcing" language.
At least for me, this type of device would be most useful on say my first visit to say, Beijing. Everyone I'd interact with would fail to understand my "context," when speaking in vernacular.
Back to my example, I point to the water fountain and say, "this is really cool." Does the unit understand that I'm talking about the the water temperature v. the appearance of the fountain and how does it translate that into Chinese so both parties are communicating?
Don't get me wrong - this would be an amazing piece of software for international business communication, travel, and generally making new friends who don't speak like languages.
But as they say, " I'm from Missouri, you got to show me," before I'll believe it works as seamlessly as they claim it will.
They should name it, 'Babel,' in difference to the biblical story where god allegedly punishes mankind for daring to build a tower to the heavens and gives everyone different languages. In short - suck it god.