Agreed !! Actually, it's a real problem that's not limited to spelling. Look at Siri for instance, granted I haven't used it in a few years, back in the days it was impossible to use for most of my contacts. Indeed, I have both English and French contacts and it's a nightmare to use with Siri.
My Siri is in English because I figured it was more reliable for everyday us then in French. But my mom's contact is as 'maman', can't use Siri to call her. Or I have to try and pronounce 'maman' with an english accent and hope Siri know what I'm talking about. And that's an easy one, try a name like 'Jean Brentois'.... But I assume setting up Siri in French will lead to the same problem, but with my non French contacts now. I have not tried however.
So obviously I get the challenge, but it makes it very hard to use (I can't use Siri like tools in parts because of this). Especially since so many of my contacts are international.
EDIT: a quick fix for contact pronounciation might be to ask the user how he pronounces a particular contact when adding it.
Similarly, why not allow for a special syntax allowing for multiple languages in a sentence ? Say my first language is English, my second is French, and my third is Spanish. Why not something like that: "Let's go to the $$casa $demain $avec $toi, what do you think ?"