A great article was just published by Igor regarding the way to control the language sorting. By default, the languages that show up in that list are not sorted by name, but by the date they were created.
In the multilingual solutions with more than 10 languages this may cause some confusion from the editors perspective that have access to multiple languages. If there are not security settings specified on the language level, this may be a bit of an inconvenience.
Using this solution, you can control the language sort order by either name as it is shown in the example or by other parameters, such as number of versions of example.
Kudos goes to Igor for the solution!