I was aware of that, but if they can include a seperate Flash VM, then they can include a seperate Java VM just as easily, if not more so.
It also raises my other often unaswered question about Android. At what point are they going to just use a standard JavaVM? The two main theories are A) that it was a licensing dodge because (like Adobe Flash did till recently) Sun gave Java away on the desktop and charged for mobile and set-top boxes, or B) it was necessary to get performance on low power hardware.
I didn't believe the latter reason at the time, and it's only getting less true as phones get better processors and people talk about putting it on tablets and netbooks. The former reason is apparently toast since Oracle has announced the merging of Java ME and SE which I'm guessing includes licensing terms.