I agree with Kent. Microsoft has every right to ship whatever software they choose with their OS, within license restrictions. Forcing Microsoft to supply Java with their OS is pretty dumb, but forcing them not to have their own version of Java (MS Virtual Machine) is valid.
What next? Will Apple get pissed because MS doesn't supply QuickTime with Windows?
This is all hot air, anyway. If anyone gave a flying F*** about breaking up the Microsoft monopoly, they'd stop wasting their time with fluff like bundling IE and Java, and attack the core issues: The bootloader and Microsoft's oh-so-secret "exclusivity" contracts.