Google announced that the Translate API would be depreciated on May 26th, 
2011.  Unfortunately, they made that announcement on May 26th, 2011 (if I 
remember correctly) so you're right, no advanced notice.  This was due to 
the large volume of traffic the API received.  Some have even speculated 
that the real source of the traffic have been iOS developers.  Regardless, 
the API will continue to function in a limited, throttled fashion, until 
December 1, 2011 when it will be turned off all together.

On June 3rd, Google announced 
plans<http://googlecode.blogspot.com/2011/05/spring-cleaning-for-some-of-our-apis.html>to
 release a paid version of the API so if translation is mission critical 
you'll have an option moving forward.

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