Well we have came a long way! I am not sure how long this has been around since I stopped to care with my G1. I was just content with it working. But now that I got the Nexus, I am back to tinkering with my phone.
I had to unlock it first, then installed RA-Nexus recovery image for a lot of nifty features like backup and restore, Then installed Cyanogen’s mod rom. And finally, flashed this file from arabicandroid developed by @aalsanad.
It might sound intimidating all this hacking and flashing, and it probably is. But its not really hard to get your head around. These are the basic steps to Arabizing an out of the box Nexus One. Other handsets have slightly different steps.
With this hack, my needs with an Arabic Android is complete. I wouldn’t use an Arabic GUI nor a virtual keyboard. I am completely satisfied.