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If I remember correctly, there was a discussion before about it, but some people felt that it would be adding too much size to the download for people who don't actually use all the languages, especially if some translations include also a lot images.
Therefore we're providing "local" versions of XOOPS on the local support sites, and try to keep copies of them on SourceForge, as well as on SVN.
What would make sense however, is to add all local languages to "Install", so people can still install XOOPS in "their local" language.
After that, it would be nice to have a mechanism in XOOPS, that could download the selected local files directly to XOOPS, if the user wants to have another language.
Of course, we can revisit this discussion on how to make the best way to provide multi-lingual XOOPS to our users.