The Java SE Embedded team continues to follow the mainline JDK and has shipped their 7u2 and 6u30 releases. These releases include new ports to Linux on embedded PPC devices, and support for the server (C2) compiler on ARM. The latter improves Java performance on ARM systems by approximately 20-40%. You can find the downloads and release notes (7u2, 6u30) on the Oracle OTN web site.
Oracle's longer term strategy for Java on Embedded devices - as shared at JavaOne 2011 - is to converge the Java ME/CDC and Java SE Embedded platforms into one and use Project Jigsaw to produce a base module based on JDK 8 that requires no more than approximately 10 MB ROM. We also intend to port JavaFX to Linux on ARM for a coherent client story ranging from medium sized embedded devices to normal laptops and desktops.