Aldo's post pretty much sums it up - as I agree (obviously) that there are fundamental differences between your "pure" Java and Javascript, Javascript is based and built upon Java itself, and that's why I maintain that Javascript is a form of Java. Anyone is free, though, to ignore the words on the original press release and believe whatever they want.
And about the applicability of Java, you're forgetting the single largest market where it is being employed right now - corporate applications. Java (and more specifically, J2EE) is the single most used technology for corporate solutions, and that's why Microsoft is trying to create a whole hype around .NET - it is their attempt at a response to the increasing popularity and use of Java by the clients that really matter. As for its use on "lesser" applications, it's getting better at it every day, and even if you can still argue that you can do "better" on a different language (such as C++), you'll have a harder time trying to argue that you can do it faster.