Some pieces of software "encrypt" passwords with base64 or XOR and make them look garbled and that gives you false sense of security. But in reality these passwords can be decrypted in milliseconds by anyone.
So for Oracle ruining Java would not make any financial sense, neither short term nor long term. If they have at least 2 brain cells working, they will not do it. Although big companies do not always act rationally.
"Everyone's head is a cheap movie show." -- Jeff G. Bone