Daring Fireball, via Digital Arts, brings word that Sun hasn't stopped trying to bring a Java Virtual Machine (JVM) to the iPhone even though:
Apple has not been publicly receptive to having Java on its popular new device. There have been questions about whether Apple's iPhone SDK agreement would permit this. The JVM potentially could sidestep Apple's App Store program for dispensing iPhone applications.
And while Sun's efforts continue, they're also hedging their bets with Innaworks, who produces alcheMo, which may let Java programs compile as native iPhone apps, ready for App Store: