On the other hand, the biggest localization scandal (for lack of a better word) didn’t happen at the translation, it happened when failed YA authors were allowed to rewrite the work, which will still probably be a problem. So it might not do very much good either.

I think this is an important point. If this can take the translator’s ego out of the equation it would be a clear win. But then, they would probably insert it back again in the revision stage. My best case scenario would be that with the AI doing the heavy lifting there is enough human workforce going around so that those type of translators who rewrite the story find themself jobless.