Oh god you have no idea how much I want to believe this. But alas, it is only a rumor. According to Operation Rainfall, an anonymous source within Nintendo is stating that the localization of Xenoblade is complete and that The Last Story is up next for localization. No word yet on Pandora’s Tower. However, it seems even Operation Rainfall is suspicious about the news. It does beg the question though. Say it really did get localized. Are they using the British accent localization, or a more American English sounding localizing? You can read more about this on Operation Rainfall’s blog.
Source: NTSC Xenoblade Done, The Last Story In Progress [Operation Rainfall]