Java actually installs malware (the Ask toolbar) unless you are careful enough to deselect it during the installation/update process.
Funny, but he didn't installed the Ask toolbar :). I did when uninstalling/reinstalling Java and clicking a little bit too fast :). Hopefully it's not as tedious to remove as a trojan.
It tricks people to installing it, reports your search activity (maybe other data? I can't find details, not installing it myself), and takes major, unnecessary steps to make it hard to uninstall it. Sounds like malware to me.
Most common search suggestions for Cydoor (well known adware): http://i.imgur.com/iXqJdzU.png
Most common search suggestions for Ask Toolbar: http://i.imgur.com/HziYjkZ.png
Looks pretty similar to me.