The reason they used their own bytecode was because of the Sun vs MS thing. Google wanted to add apis that where needed for modern android, but feared doing so would put them at odds with Sun, so they created a whole new bytecode system to avoid copyright entanglements.
Regardless, Androids about the only reason Java is still relevant. Sure theres the enterprise java thing, but even thats getting eaten away by web apps in more agile languages. Last job I had was at a government department where we where rewriting clunky old java apps to django and ruby on rails.
If it was about "the future of Java" Oracle should be thanking Google. But its not, its about getting a slice of that android pie.