Yeah, but nothing in it is Smalltalk-specific. It's not like Smalltalk survives in the mainstream because of Hotspot (in the way that, say, Algol survives).
Well, a counter point then can be: and why did those vendors did not insist on Smalltalk? Why weren't Smalltalk more heavily pushed by some big vendor itself?
It's not like SUN was the only player in town. IBM pushed Smalltalk IIRC.
I think this (from StackOverflow) tells a more comprehensive story):
• when Smalltalk was introduced, it was too far ahead of its time in terms of what kind of hardware it really needed
• In 1995, when Java was released to great fanfare, one of the primary Smalltalk vendors (ParcPlace) was busy merging with another (Digitalk), and that merger ended up being more of a knife fight
• By 2000, when Cincom acquired VisualWorks (ObjectStudio was already a Cincom product), Smalltalk had faded from the "hip language" scene
Java happened. Business were already in the process of adopting Smalltalk.
Hotspot is a Smalltalk JIT compiler reborn.
Eclipse is Visual Age for Smalltalk reborn. It still keeps the old Smalltalk code browser.