That wasn't the problem (don't have any restrictions enabled and all other apps/games were working fine). It was saying "Product list up to date" under the "AVAILABLE FOR PURCHASE" section. However I found that if i touched any of the empty space beneath it, it started adding languages under "INSTALLED". Still not sure what the cause was, but they were there, just showed up as all blank lines.
Maybe like Gov said after my comment it's a problem with newer devices like the iPhone 5 or iPad 4. If you have an older device it would probably work fine. I was thinking of getting this app, but after the problem you had, the same probably would happen to me since I have an iPod touch 5th generation.
But you just need to touch in the area where they are supposed to be listed and they will get installed. Many people with same or newer devices did not have this problem.
Have you tried clicking in the blank area? There was no list for me either but clicking on the blank space started adding the language packs.