Could Java die as a result of this?
Oracne and "open" don't go together. They won't grant Harmony a licence and, if they don't, whether Apache stays as a member won't mean much because the community that gave birth to java in teh first place, don't like "oracle open" (ie. "closed") so I don't believe that it will be long before another, "Java" is born and in a few years this whole argument will be just another example of how corporations who seek to monopolise their controle on technology, was rendered completely irrelevant.
This kind of junk has been playing out ever since IBM tried to monopolise the PC technology market ... and look what happened in that field. They never learn.