Nokia actually have an example of using java based location serverices based on JSR-179. It seems to run ok on the N95.
A couple of things.
Java has a huge fragmentation problem with handset manufacturers and operators each wanting to add their own APIs, libraries and security. If JavaFx is introduced then it will have to coexist happily with J2ME for a good few years (including supplying compatible mobile LCDUI classes). Operators want a platform to deploy single apps and updates accross all phones - it cost them a lot of money to support multiple platforms.
J2ME can do a hell of a lot more than "widget" based apps. There are JSRs for bluetooth, SIP, OpenGL. While a web app can't even draw a graph (how do you draw a line or bezier curve in XHTML?) without getting the server to generate it.
I think James Gosling is generally regarded as the creator/inventor of Java. Last time i checked software isn't made from the DNA leaked from the programmer's finger tips.
As far as I see it. Java is pretty simple as the core language definition which makes it good for re-usable algorithmic code, but further confusing product, segmentation and Java brand seems to be doing more bad than good.
Are google looknig at native for performance, or is it to avoid dabbling in APIs so heavily influenced by the ops?