Surely some people that just want Java with closures will not move to Scala anymore. Some people that moved because they wanted a better Java, may move back to Java, because Scala is actually painful when used as a better Java. But Scala will thrive, as it's a very well designed language that achieves the best combination between OOP and FP available.
In fact Java 8 is good news for Scala, because of the JVM improvements and because Java developers will be more comfortable in consuming libraries built with Scala, like Play and Akka. This is extremely good news, because with the Java ecosystem being so massive, Scala will gain more users than it will lose once people start seeing the possibilities.