No -- that's the Java plug-in (for browsers). The java 7 runtime for standalone is not affected.
Code:
Last login: Sun Jan 13 06:45:42 on ttys000
tom8:~ tom$ java -version
java version "1.7.0_06"
Java(TM) SE Runtime Environment (build 1.7.0_06-b24)
Java HotSpot(TM) 64-Bit Server VM (build 23.2-b09, mixed mode)
tom8:~ tom$