I will first say that I have no dealt with localization before so this is really just my opinion and not based on experience.
I like your 2nd option. As far as the DB goes.. its data and a way to access/manipulate the data. In this case all the data is there and you will be mostly reading it and have a good way of getting to it. You can answer the same problem in both scenarios. I would prefer the 2nd option myself because it reduces crazy tables everywhere. You are keeping a table around for the specific purpose of translation. You can reuse it (no creating more tables just for upgrades later) and it maintains integrity. You could even reuse names if it makes sense somewhere. Like if you had 'Mantequilla' as a Category and as a Favorite somewhere else.
I like to put related data in one table when possible and not have data related to 'translating' in multiple places.
The only place this may fail is if you have more than just Name and Description for something that needs translation. Maybe you have Name, Description, Code, Magic Word, Silly Nickname, etc for an item. Although you could get around this by adding more NameTokens in that relevant table and reusing Name, but this is a bit of a hack.
Just make sure the model meets your needs everyone and it should work fine. You can always throw in a special translation table if needed later for a specific table. This wouldn't be to different from creating lots of table although a hybrid solution could be confusing. It is best to find one way and try to stick to it.
