I have a better solution for the language names: Instead of changing the library, I changed the data it used. This allows to have real name (עברית) instead of he_IL.

To use this, download the file
http://my.arava.co.il/~matan/770/heb..._lang_name.tgz

and untar it as root with the command:

tar -C / -xzf ar_heb_lang_name.tgz

This requires a reboot. After the reboot, hebrew and arabic will appear in the input languages list like other languages.