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What is Current Shape of Java Industry?

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Three questions, all related.
1. Given that no version of either Netscape or Internet Explorer ever supported Java 2, I think Sun has an interest in making sure developers can take advantage in the latest features.
Is Sun better off if your web browser forces a download from Sun instead of providing a Microsoft or Netscape implementation based on older specs?
2. Since Java of some type is available from the Microsoft and Netscape offerings, users may not have much incentive to download the Sun browser plug-in offering the latest features. At the same time, most people who use Java seem to use it in a web browser. If you're Sun, are you really trying to make Java a platform in the sense that the average user goes to Best Buy looking for a PC bundled with Java 2 version 1.4 rather than Windows XP? Or do you just concede that battle (except for intranets) and concentrate on server-side and device-side Java, cases in which the user does not really think about the platform?
3. For what applications are new Java jobs most likely to appear?
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