(a) Java has always been marketed as an "open" environment, where alternate VM's were encouraged.
(b) Oracle doesn't make any money from the J2SE JVM anyway (it's free to use), and the income they get from licencing J2ME is dropping quickly.
(c) Apache/IBM/Intel have given a lot back to Java, and continue to do so. Look at their involvement on the JCP process - most JCP changes aren't led by Oracle/Sun and getting those done takes real engineering resources. The outputs of them are happily picked up by Oracle/Sun and included in Java
(d) Given that IBM/Apache have invested as much in Java as Sun/Oracle ever did it's not clear to me why Oracle should try and stop them investing more to build their own VM.
In anycase IBM has given up and join Oracle on OpenJDK (instead of Apache Harmony).
b, c) Agreed, it's a rapidly failing ship.
d) Why should Oracle care how much a competitor has spent on developing a replacement for Oracles technology?
d) The Java ecosystem has grown because of the diverse range of vendors. It's easy to make an argument that JavaEE only survived the .NET onslaught back in ~2002-2005 because of the high-quality and free implementations from Apache. The current biggest growth market for Java is in non-traditional areas (eg, Google's product: AppEngine/J, GWT and especially Android). Oracle should work with these vendors to keep the Java platform relevant.
Everyone else wants Oracle to license to harmony because that's best for everyone... except Oracle.
Damn Sun fucked this whole thing up. Should have GPLed it from day one... They wanted their cake and they wanted to eat it too.
Because Sun repeatedly promised to do so. IBM and Intel spent (probably) millions on Harmony with the understanding that it would be certified.
Sections 5B through 5F look relevant.