Heck, in China you can take a driving test in English to be able to drive here. IIRC it was 20-30 years ago that most countries in the world adopted international shapes for driving signs. Stop, yield, etc signs are the same shape in most of the world.
I’m not saying that not being able to read the signs is an advantage or anything, but it also doesn’t seem to be overly important in my experience of driving in Taiwan, China and France.
Odd that they’d make people holding a valid American license take a test; all I had to do to get a German license was trade in my Canadian license (and pay to have it officially translated). No written, driving, or eye exam was required. This was in early 2004.
Judging from Europe with its umpteen dozen languages but relatively free flow of traffic across borders, I’d say it’s not such a problem. A German driving license is valid in Hungary, Portugal, and Ireland, but Germans don’t need to take their driving exams in Hungarian, Portuguese, and Irish. They just need to be able to recognize international signage conventions (triangle with red border=warning, circle with red border=prohibition, blue circle=obligation, rectangle with blue border=information, etc.). The United States doesn’t follow these conventions, but has its own system; however, as long as drivers learn it, it shouldn’t matter what language they speak.