This isn't quite as slick as how word lens does it. Google's translation is likely better, but Word Lens superimposes the translated text back into place on the original image.

Anyone tried to install it on a stock 2.3.3 Nexus One and been told it's incompatible?

Yep, we were sad about that one. The hardware is up to spec but there's something about the GPU driver that's causing the N1 to perform poorly.

Most of the time, in my experience, goggles fails to even recognize it as text to translate, because it tries to identify objects, too.