English and Japanese work very differently and it's a pain to translate sentences smoothly. Even Google Translate is unable to give a decent translation most of the time.
If what you want is something to translate words though, I don't think SmileBASIC's servers could handle an entire library of words, however someone may try to make a small library containing the most common words.
As you can see in my latest posts, I'm working on a Japanese-learning program. It would indeed be useful to have some kind of small dictionary. I might try to do that in the future.
It would be hard enough to translate any language. Firstly you would need millions and millions of words. Secondly you would need the translation to make sense. Grammar works differently in different languages. Basically the programme is too complex to be made. Google translate isn't even that perfect. [Infact its pretty bad with translation, but its the best we've got.]
Hope this helps :)