This is where I think pg's bias steered him wrong. Hackers tend not to like Java (although that is less the case now with the JVM ecosystem being what it is), but hackers do not solely determine the success of technology. Furthermore, the type of hacker that pg is interested in—the lisper, the 10Xer, the startup founder—are in limited supply. Certainly they wield more influence per capita, but they still need critical mass to form a stable community around an open source platform in order to compete with large organizations. If you're looking to build a product or a small scale project, by all means find yourself a Grade-A hacker.
If you want to make the next ubiquitous programming platform though, there are other qualities that are necessary. Consensus building is probably the most important skill that large organizations have that hackers will struggle with at scale. If you have a ton of management and mediocre programmers, it's easier to at least get them moving in the same direction, and they'll be more tolerant of the foibles of a designed-by-committee language. Sun had the perfect storm of strong technical talent to design a solid language, but also the large organization effects to market a new platform to enterprise decision makers.
In a way I think pg's smell test might be more valid for an earlier era. He underestimated the influence of the mediocre programming armies, probably because back in the old days there weren't as many and they weren't as mediocre. This is just speculation on my part, but I have to imagine that the quality of the average programmer as declined over time as the numbers and appearance as a recognized career path have increased. I mean how many people were programmers in the 70s because they're parents thought that's what they should go to school for?