Same here, I have the 1.6.0_37, I have downloaded the one from the oracle website and run again the terminal app to check which version and still says as the above. What am I not getting?
That Terminal command shows the version of the Java JRE you have, which is not the same thing as the web plugin. The web plugin is what was updated by Apple today.
http://javatester.org/version.html
Turn on Java in your browser and visit this page. It will show what Java plugin version your browser is running.
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Just got a popup notice that Oracle has released an update to Java 7 bringing it up to v15.