Gettext is currently used by libvlc (and plugins) as if libvlc was a program. That works fine with the VLC binary itself... but that's flawed when used as a library, such as in browser's plugin or bound to a scripting language.
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The only remaining issue is the usage of setlocale() when called as an embedded plugin. Maybe we should still do that, so that we don't fallback to ASCII/C/POSIX if the using program does not call setlocale itself (I doubt ActiveX users do that...).
Also, in most case, this won't conflict. On POSIX systems, there is no problem at all, as a side effect of manual language setting being broken.