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:

[I]nitially targeted at games publishers. Now in a beta release, alcheMo for iPhone can be used to port Java ME mobile games to iPhone and iPod touch without the need for further manual adjustments. The product features an optimizing translator to convert Java ME application source code to equivalent source code for iPhone, according to the Innaworks press statement on the product.

While Apple's Cocao Touch development sounds like a more chocolaty, and much sweeter beverage than Java, Sun sure does seem determined. Of course, determination has a tendency to crash and explode in Matrix-like bullet time when it strikes up against the Zen-like immovability of one Steven P. Jobs.

I don't think we'll be seeing the steaming coffee mug on the iPhone any time soon. You?