> In theory Java can be more optimized than C—machine code generation benefits from knowledge of how the program actually executes.

I used to believe this, but I think the same level of theory that says a JIT can be sufficiently smart enough to figure everything out means that a compiler can be sufficiently smart enough to figure everything out as well. This is one of those areas that theory and practice are so far apart that theory should be accompanied with a context of "some day, in the future, if we're lucky..."

What we've seen in reality is that as JIT engines get better, compilers also get better, and retain their lead.