There are entirely too many languages in D&D. Why does every monster (or so it seems) need its own language?
I like to trim the fat... some examples (Homebrew):
Common: Does not exist. As with the above post regarding FR, this is much like "chondathan" and is known as Tallarnese. The Tallarn Empire covers a significant portion of the known world. Tallarn is also the name of one of the five surviving God-Kings from the Age of Man (I totally stole the concept of this nation from an old friend, Talath

).
Primal: covers Terran, Auran, Aquan & and Ignan... and any other "elemental" tongues. It might include other ancient/bizarre languages... such as Fey, Sylvan, etc.
Celestial: virtually all outsiders share a common ancestry if you go back far enough, so celestial, infernal, and abyssal (daemon, slaad, etc) are actually one language with some major dialect/accent issues (demons speak it at a clipped pace and much more gutterally than Archons do, for example).
Jotun: Northmen, dwarves, giants, orcs, goblinoids.
Draconic (the Auld Tongue): dragons, scholars, magi, elves, kobolds, lizardmen, etc.
Halfling: start with no known languages... but they are innately psionic and can speak with any sentient being that has a language... within 100ft.
At this point I always come down to the "half a dozen human tongues" issue and wonder why we get so many... yet I'm willing to cut away so many other languages. Some sort of "Tower of Babel" explaination? Hell, I dunno.
etc...
edit: the whole snipping languages down concept... I got it from Force_User while I was in his group in S.D. Great storyteller-DM btw!
re-edit: yeah, I'm not too good at the whole creativity thing... but I can yoink a great idea at the drop of a hat!