Not sure about the recission part, but they're definitely out to kill the competition. I fully expect the battle to get extremely bloody. Apple's sacrifice of their own Java implementation might well have been under duress, given this development.
It might be a good idea at this point to start looking at other languages. Since D is supposed to be "C# done right", it might be a language worth investigating. All you'd need is a portable virtual machine for it and you've a rival to Java that is (supposedly) superior to Java structurally.
Yep and you better have a license from Oracle/Sun as Microsoft does or Larry will sick his patent police on you faster than you can say unsigned int