That's how you build an empire. And google knows it has to gain market after market after market... And when China will fall under Google's domination, we'll have a 10 chinese websites for every single one in our mother's language. Then it will be very scary to do no language search .....

I can confirm that Google is doing a lot to localize search for some market, and I'll make example with my language.

In Serbian language there are two scripts used, Latin and Cyrillic and they are equally used. So word ћирилица is same as ćirilica, only transliterated. But also there is comon use of search here to type query with English keyboard so search for this word would be cirilica. Note that Google searches all scripts and also searches on different grammar cases (everything taht is bold). Yahoo or MSN don't have localized search here and that's why Google is used in probably over 95% cases (and it is well monetizing it).