For an entity-translated node, we have publication statuses for the entire node ('node.status' db field - "Boolean indicating whether the node is published (visible to non-administrators)"), and for each translation ('entity_translation.status' - "Boolean indicating whether the translation is published (visible to non-administrators)").
While 'node.status' does indeed control node visibility to non-administrators, 'entity_translation.status' does not seem to work (all translations are visible for 'node.status'=1 and invisible for 'node.status'=1, regardless of the 'entity_translation.status' value).


Status:Active» Postponed (maintainer needs more info)

Please, confirm this still exists in the latest dev.

Testing with version = "7.x-1.0-beta2+7-dev" of 2012-Dec-20
Yes, this behavior still exists:
visibility for non-administrators is controlled by the node publishing status ('node.status'), and does not depend on the translation publishing status (all translations are visible for 'node.status'=1 and invisible for 'node.status'=0, regardless of their 'entity_translation.status' values).

It's the same in the latest dev versione... please fix it because is very problematic

I just tried a clean installation of D7 + the latest dev. I have a published english node with an unpublished italian translation. The anonymous user can only see the english values both on node/1 and on it/node/1.

To fix this I need a more detailed explation of what the expected behavior is wrt the actual behavior. And most importantly the exact steps to reproduce the issue starting from a clean D7 installation and possibly installing additional modules (specify their versions!).