When using a term reference field only show the term options that are in the current language

Description of the need

When locale is enabled and a taxonomy is enabled to be translated, the terms can be set to a language or All. But when adding a node with a term reference field it currently shows all terms regardless of language.

Proposed solution

Filter the terms on the node add/edit field so it shows only those in interface language or set to All languages.

This could be set as an option so site admins could decide to show all terms regardless of language.