The problem I'm citing in Java is not the performance, it's the semantics and having to explain what an InterruptedException is to every generation of programmers, including those who came before me. If you think virtual threads somehow do anything about what's difficult about concurrency on the JVM, we're talking on different wavelengths. Structured Concurrency is the TINIEST of baby steps and doesn't really do anything to change the experience, and it's only just now in preview, in the most recent LTS JVM? Hardly a solution.
It doesn't matter whether the JVM is developed with Kotlin in mind, as long as Kotlin continues to offer a better way to leverage what the JVM does have to offer. It's not some killer argument that Kotlin somehow can't be useful if the host platform isn't specifically developing their roadmap (especially because you can... just write Java, if you need it?).
Scala's demise likewise has nothing to do with whether the JVM is supporting Scala, and any suggestion that Java's language features have eliminated Scala's value proposition are similarly misplaced.