Hi mbpark, this is a great post and we have been thinking about how to answer it all week. You should know the Sun Embedded Java guys and gals liked it too...;-)
First, it is completely clear that a Sun solution is better than an IBM (without Sun) solution. It seems IBM lags Sun by about a year, plus it is important to have all the latest and greatest stuff available, like, identity management, permissions, etc. So, we agree about the "gold standard" and are working to make this happen.
Second, we have to take this one step at a time. We are not Apple, who is known to be seeding 1.5 to their developers already. Of course, they do their own work and have lots of resources focused on it. We need to walk before we run. We are going to start with a J2SE 1.4.2 "headless" configuration and a binary license agreement for re-distribution. The port is demo-able, but not complete and certainly not certified yet. BTW, the Sun Embedded Java Team will be at this event next week:
Go see the ODW in action with the Java demo if you are there...;-)
The first OS target is Debian, but the rest should follow progressively. This will get you what you need for running JBoss, Tomcat, and the various application servers (i.e., Apache). Plus, we are shooting for Server VM too, but that will probably take a couple more months after the initial release. There is no reason today why the first release should not happen before the end of the year.
Then we will go for the whole package with graphical support. Of course, the idea is to tune the JVM to the Pegasos HAL/OF so we can carry this support wherever the HAL goes.
We are looking into all the Oracle stuff you mentioned. We think it is great you are working on all these things. For your first post on PPCZone, we sure do appreciate your participation already! :-)