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Once method handles come out in java 7 things should get even more exciting.

It sounds like you are referring to Project Lambda, which has been pushed back to at least Java 8.

http://openjdk.java.net/projects/jdk7/features/

Project Lambda is about adding closures to the Java language. Method handles are part of the Da Vinci Machine Project (http://wikis.sun.com/display/mlvm/Home) which is at least partially supported in JDK 7.

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