Java had a moment on the client. We still have a few Java applets in our product (a file manager, an ssh/terminal client, probably a couple of others I'm not thinking of), though they are being re-written as AJAX apps as we speak. But all of the flaws in Java are still present even on modern machines with modern Java versions...so no use flogging a dead horse.
Right. I will also add that although it still has a long way to go, java (and java libs/framework) is getting better all the time. Compare todays web-frameworks (like wicket & seam) to what we had 3 years ago - a lot of good ideas from other platforms are being absorbed into the java world.