"After all, its a technology designed to hurt MS."
Java is a technology designed to be widely useful. The fact that it hurts Microsoft is strictly incidental. Further, it wouldn't hurt Microsoft either if they were not an abusive monopoly.
The ZDNet article is written from Microsoft press releases and does not bring up the monopoly problem. It's pretty certain Sun will jump on any anti-trust charges they can find and getting an injunction on XP would really give them a thrill.