In practice the JVM does quite well on memory usage, its only flaw being that it doesn't release memory back. If your Eclipse instance ends up using 2 GB that's because it does lots of stuff and needs 2 GB of memory.
Either way, Eclipse is comparable in memory usage with Visual Studio, which has most of its components written in C++.
The only problem with using Java for desktop apps is with native integration with the OS ... Java GUI toolkits suck badly, except one which isn't really popular ... Qt Jambi.
But in the case of Android, this discussion is not really relevant ... they use their own VM that has different optimization goals (so any comparison to the JVM is apples vs oranges), and every component you use is native to Android.
Not true. The Sun/Oracle JVM at least most definitely releases free memory. It's just rather reluctant to do so - but that, too, can be tweaked via the -XX:MinHeapFreeRatio and -XX:MaxHeapFreeRatio parameters
I'm with you - Java doesn't excel particularly on conventional PC desktop apps. But that's a world away from mobile apps.
The vast majority of run-of-the-mill phones run Java J2ME apps very well.
For example:
http://www.jamster.com/fw/goto/games
The top games are pretty high quality. But the rant against Java fails to mention the billions of J2ME games downloaded... convenient.
That said, yes, many Java developers write bad code, but so do developers who write in other languages. Java just gets a higher profile because unfortunately the Java community has a tradition of writing libraries and APIs that sacrifice usability for flexibility (that's the kindest way I can put it, anyway).
Slightly off-topic: Am I the only one who feels that Eclipse is the IDE equivalent of a hair shirt? I find its UI sluggish, its insistence on imposing its ideas about project management on you irritating, and to be generally overcomplicated. To me, NetBeans, former versions of IntelliJ, and VS are much nicer products (mind you, half the time I still just use an text editor though).
Something like the Eclipse RCP mail app demo could provide a more representative baseline memory footprint of the platform (http://www.eclipse.org/articles/Article-RCP-3/tutorial3.html). The Eclipse platform can be quite compact without the IDE features, JDT & online help indexing, etc.
Check out Processing for a nimble Java app.