Java on iPhone
Sun has announced plans to put Java on the iPhone. See Sun Announces JVM for iPhone for the video.
Sun has announced their intention for a JVM to be put on iPhone and iPod Touch. According to Sun's Eric Klein, there is nothing in the iPhone SDK that specifically prohibits this (although this is currently under dispute).
You can view the video or listen to the audio here: Sun Announces JVM for iPhone
Sun plans to announce more details about their iPhone plans within the next few weeks. Check back on Sun's media page (http://www.sun.com/aboutsun/media/index.jsp) for announcements as they are made.