Last week, Mark Reinhold proposed breaking JDK7 into two releases: JDK7-lite, and JDK8 to follow closely behind. This was described as "Plan B", with "Plan A" being Java SE 7 released with all of the features planned for JDK7. Today, Mark announced that Oracle will go with Plan B, which is:

-JDK 7 (minus Lambda, Jigsaw, and part of Coin) - released Mid 2011 -JDK 8 (Lambda, Jigsaw, the rest of Coin, ++) - released Late 2012

A new milestone schedule will be posted on the OpenJDK site here: http://openjdk.java.net/projects/jdk7/milestones

Mark also made it clear that Oracle has no plans to dismantle the OpenJDK, as they did with Open Solaris. In fact, all of Java SE development will continue in the open, as part of the Open JDK projects. This development will be open and available to the Java community.