Cold Fusion is popular enough, but I suspect that the pool of programming talent and 3d-party apps is larger for Java. Also, for the higher end, I don't know if Cold Fusion can do the clustering load-balancing and failover tricks that the big
J2EE servers do.
I suspect that to a lot of manager-types, Cold Fusion has much the same appeal as COBOL - it's "readable" since everything's pretty much declarative. Even in COBOL, the readability's more illusion than fact, however.