I understand that some people / corporations use it. My wife's office has a lot of remote stuff that done through websites and they also set up lots of web applications.
My main point, is that people who work in those environments and need those web applications usually have Windows machines (because that's what the corporations supply their employees for use). My wife's office won't even permit us to use Macs to access the information remotely or to remotely log-in to their server (even though the software to do so is available for free). They just will not support it, and provide pre-configured installers to run on the PC's (with hidden settings), so that we cannot obtain the information needed to manually setup a computer to log-in.
So, since they won't provide the settings, and they only provide Windows installers to configure the PC's, you can't use a Mac even though the software is available for the Mac (and for free) to get into the system.
Everything they do is with web apps. So, I'm aware of it's use in the business world. But, since many corporations mandate using computers they supply to perform business tasks, that takes a pretty good chunk out of the potential users.
The main point being, that your average web user isn't going to miss or notice the lack of Java support. I go all over the web, and really can't recall the last time a Java applet loaded.
The Key being Enterprise. Fortune 1000 [1-1000] use Java and write very large applications suites which are a combination of AppServer/Server-side and AWT/Swing Client-side apps that are often custom KIOSK apps that hit data records requiring hundreds of millions of rows and more.
Apple needs to make a coherent strategy that is consistent with the rest of the Industry.
It has taken 10 years to shed the ilk that was Carbon/Classic. That is actually 8 years longer than originally planned and it was only last WWDC they made it clear by killing off Carbon64 to make the switch.
Apple finally realizes it can be competitive in their first class Cocoa environment and creating compelling applications for consumers to use and be productive, without having to cower to Adobe and Microsoft.
However, there is no point in investing in Java if you're not going to make an intriguing platform for development/deployment running Java in the Enterprise.
Cocoa/ObjC WebObjects when it was in its true roots was an incredibly powerful and scalable development system.
With the advent of various other RAD tools it's clear that Java isn't the only game in town.
Make your minds up Apple and make the solution a compelling, robust and extensible one.