It wouldn't surprise me if there was some great building project that was started but eventually failed, but the confused languages bit is just an explanation for something they didn't understand (i.e. we all came from adam, so why don't we all speak the same language?). Of course, today, we have observed the evolution of language and understand how different groups end up speaking completely different languages. If god really confused the languages, he didn't do a very good job since english/spanish/latin/etc all share a lot of words, as well as many gramatical constructs.
Just in the relatively short period of time that the US and UK have been seperate cultures, it's clear that we're developing our own disprate languages. In the US if you ask for a lift, you're asking for a ride home, in the UK you'll be directed to the nearest elevator. Clearly god is not required to cause this "confusion."
What's more, is if god observed a group of people trying to build a tower that would rise into the heavens in order to be impervious to any future flood, I can't imagine why he would've done anything more than laugh. If the flood waters covered the top of Mt. Everest, they couldn't have had the slightest chance of building a tower higher than that, especially not starting in the region where they're supposed to have begun building, as it is barely above sea level. With all our technology (and vastly greater world population) we would be hard pressed to build such a tower today. So why would god confuse the languages to stop them from attempting something that was beyond their means anyway? Just to be a dick? I think it would've been a greater "witness" to the superiority of god if he'd just let them fail on their own, instead of acting as if he were afraid that they might succeed.