There is certainly a danger of having all government documents in one language if you have a large population that has a less-than-adequate understanding of English. Multi-language services, documents, and websites are created for this reason. It makes sense to give language-based access on all levels. In Toronto, for example, you'll see many examples of this.
The reason why I say it's dangerous is because having English as the only available language would mean it is the language of the privileged. The benefit of having government documents in several languages is that is ensures that newcomers or otherwise non-English speakers can participate in society at a reasonable level. If you take this away, you run into the problem of marginalizing entire subcultures within the nation. This barrier to access would be profound, especially if you don't set up the means for people to learn the single official language. Not everyone can afford ESL classes or tutors, nor can everyone easily pick up a second language.
This goes beyond insulting. I daresay it would infringe on human rights in certain circumstances.
Oh, and this "language of the ghetto" thing is quite ridiculous. What, they don't speak English in ghettos?
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
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