Bingowings said:

Having R2 and Chewie speak a language that another character understands is fine because we get the jist of the whole conversation from the reaction of the others who do understand them.

To go down the Magnoliafan route is another story because we have no filler in character letting us know what the Trade Federation and Gungan guys are saying and to splash subtitles over an action film is problematic (for these eyes anyway).

I did the whole subtitles thing when tinkering with TPM on my own, and honestly, it's not that distracting. 9 times out if 10, when they get chatty, they standing, sitting, or walking... Not usually during action scenes. It really worked for me, and I really think things will truly get problematic when trying to redub lines, and then trying to mess with the score that's in the movie. It's really going to be a mess in my opinion.