I hope it's ultimately positive for Java. The stateless, single threaded nature of PHP style scripting languages allows them to scale so well. And this is a separate issue from the language itself. Java hosting is expensive and painful because you have to commit memory and CPU to each "server". Remember the M in JVM stands for machine. No wonder other camps have such a low opinion of the JVM.
Peter describes the benefits well. Highly scalable front-ends have to have these narrowed (optimised) abilities. Perhaps there's room to develop a symbiosis between the stateless front end and more traditional back ends though.
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