According to its tech specs, Apple's iPhone 3G, which was announced June 9 and should be available July 11, has language support for English, French, German, Japanese, Dutch, Italian, Spanish, Portuguese, Danish, Finnish, Norwegian, Swedish, Korean, Simplified Chinese, Traditional Chinese, Russian, and Polish.
International keyboard and dictionary support is available for English (U.S.), English (UK), French (France), French (Canada), German, Japanese, Dutch, Italian, Spanish, Portuguese (Portugal), Portuguese (Brazil), Danish, Finnish, Norwegian, Swedish, Korean (no dictionary), Simplified Chinese, Traditional Chinese, Russian, and Polish.
I understand that a software upgrade for the iPod Touch will be available in July to give it the same language features.
From reports I have received, fonts are now present for a number of additional languages, but the software is still not capable of correct display of complex scripts like Arabic, Devanagari, Tamil, and Tibetan which can be handled by the full OS X without problem.