I'd more or less given up on mobile Java being relevant for anything other than occasional gaming downloads. It just doesn't seem to have made the jump to anything remotely "mission critical" on handsets. Numerous initiatives like SavaJe's seem to have disappeared without trace.
But suddenly, a few separate discussions have referenced the very unglamorous acronym JSR281, which is the proposed Java extension that would give a Java app access to IMS capabilities on a device. This could be a good way to circumvent the woeful lack of standards around mobile handset IMS client frameworks. So, potentially, an innovative developer could write a cool messaging application or interactive game in Java, exploiting JSR281 APIs, without having to expensively port it to the various bits of proprietary on-handset IMS software middleware from NMS, Ericsson, Ecrio, Movial, Comneon, Qualphone & all the others.
It's unclear exactly when JSR281-enabled phones will ship, but my bet is Q3-2008 for massmarket devices, perhaps with a few high-end ones a bit earlier. That probably means that decent 3rd-party applications to exploit Java-IMS combinations on phones will start to appear in early 2009.