The live video translation was a startup that they acquired ("Word Lens"). It already worked offline so it would be strange if they had removed that feature.
I doubt this implies that the Google translation engine has been ported to work offline.
It does and has for some time[1]. Just switch to airplane mode and try it before asserting this? You have to download the language packs first, but it works.
I doubt this implies that the Google translation engine has been ported to work offline.