I've been working on a multilingual site and the fact that URL aliases are selectively available based on language seems a little awkward. I like that the path module is language aware and stores a language, however I view as as more of a language provider, than translatable content.
I wrote up some of my thoughts at http://darrelopry.com/story/using-url-aliasespaths-language-detection-drupal-7-and-multilingual-ux I was hoping to solicit some feedback here since I've been away from Drupal development before posting a patch or creating an issue.