Java was the reason for Oracle to take over Sun (OK, also the hardware). Since Oracles commitment to open source is, "yeah, sure, Oracle will run on Linux. ONE version of ONE distro, but, yeah, Linux", this is more likely than ever to trigger a community-fork of Java, backed by IBM.
There is no way Java is going anywhere. We can actually hope that Oracle loses some interest in Java, thereby loosening their grip and letting the language evolve.
By the way, I think JRockIt is the best JVM out there for server-side deployments. I've used both JRockIt and Sun's JVM on EC2, and JRockIt has much better memory management.