Oh yes, you're right. I'd forgotten the full context of that scene in question so yeah, I missed the extra dialogue Lahabrea made when he realized the player had the Echo. Thanks for that clarification.

However, the fact that they still are the only ones whose dialogue is spoken in a completely different language in the game (I've heard rumours that the Ascian language is actually English written in reverse and spoken by non-English speakers), still makes it seem that the Ascian language is the only one the Echo can't translate - the red dialogue shown in the text box being simply a narrative device like is used in film and TV whenever a foreign language is spoken by a character that the viewer wouldn't understand. But I guess nothing is known for certainty at this time - with the Ascians stated as returning as a major plotline in the new 2.1 story, no doubt this will be expanded upon as well. Or at least, I hope it will.