Java is everywhere, and the VM is high performance. Its library range is the best, except for C in some settings. The operating system wars are long over and the language ones are becoming irrelevant - it's about VMs now and JVM is a strong contender. One of the links off here: http://www.malhar.net/sriram/kilim/ show it nuking erlang under high loads for similar concurency patterns.
I wish it were dead. I've moved myself out of the core development team at work in order to avoid dealing with the frustrating lethargy of developing with it. What development I now do is tooling which I do entirely in python, using django, web2py and base libraries when I need web stuff. Python allows me to prorgam with all the power of the unix platform even though my C is weak and unpracticed.
But Java still has outright strengths. When support issues come up for the main product our java source code is very readable, the team thrives in spite of being distributed, the product is stable, those customers who need library compatibility with us can get it with Java. Some of the python libraries are in the lead across the board, but others are weak. Nothing in the python world comes close to cayanne for combining simplicity and power for object relational modeling (most of the offerings are less powerful and more difficult to install, sqlalchemy is extremely inaccessible).
I'm expecting the classy rollout of Python 3 to kill off the other mainstream scripting languages. But it still has large flaws. Twisted is magnificent, but if you need to do threading python stinks even more than standard java. Also, the 'self' problem and syntactic separations that prevent you from creating functions inline point to a weaknses in the settlement. I think iolanguage is the next step in the right direction. There are some areas I don't think even that could challenge Java though - java wins when you have teams working on a project.