I think everyone is missing a major point in these sort of debates. The JVM uses a shit ton of memory, and this makes it expensive to host. If someone is a poor student that is trying out different ideas for websites, then they can do it much cheaper if they don't use the JVM.
There is a reason there aren't a bunch of shared hosting providers offering jvm support, and if you look at VPN prices I'll bet money that the two things you look at are the memory allocated to your VPS and the price.
Even on the development front, I just had to order a new laptop at work because we're using the JVM and I need to run 3 JVM web services at a time every now and then, plus an IDE and I simply can't do that with 4 gigs of ram which is the max for my current laptop. The JVM process for a hello world servlet, after being hit by a number of requests, will need about 100MB of ram, for a hello world string response!
The JVM is great in certain circumstances, but it's terrible as a cheap platform for people trying to bootstrap and test the viability of ideas. I can run 3 or more ruby, python, or php sites on a $20/month VPS. I can't do that with the JVM, and I'll always bet on the bottom up technologies.
Also, he's assuming that modern times are like the past, and that you can't easily mix interpreted and compiled languages, but on the JVM this isn't so. You can use JRuby and rails, and code the hotspots in java. Hell, you can even code some of the urls in pure java and leave the less significant bits in rails. To make the situation even better, you can start off with C ruby on a cheap vps and if you're idea takes off convert it to JRuby and then start replacing the bottlenecks in java, scala, or whatever.