This is great news for MyGengo (http://mygengo.com/). They have a free machine translation API which can be upgraded to (paid) human translation by toggling a flag.

Granted, they support a lot less languages, but for the supported ones, MyGengo sounds like a much better option, unless Google manages to improve their translation and beat MyGengo pricing.

The quality of the Google Translate is awesome, considering it's automatic, but still falls short of the human doing the job. Also, it'll be interesting to see what Duolingo (http://duolingo.com/) can do, once it launches.