Is an interest of Rails Core to have Localized Templates?
It would look for the locale set and try to load the template based on the locale. So rendering an action called index when locale is "fr", it would first search for the file "index.fr.html.erb". If it's not found, it will load the default "index.html.erb".
Then we could have different files for each locale:
index.fr.html.erb index.pt-br.html.erb index.it.html.erb
Another correlated feature is Localized Rescue, that would allow the same with 404.html e 500.html files on public dir.
I've been using and collaborating to a localization plugin called Simple Localization (http://simple-localization.arkanis.de/) where those features were implemented a long time ago and are working perfectly.
Complexity and performance won't be a problem since Rails cache templates filename in an array and we will just have to check for the locale filenames in the array.
I'm prone to implement such features and create tests if it's a main interest!
Regards!
José Valim.