As for Oracle, trust me that I hate them as much as anyone[1], but raising Oracle with respect to illumos absolutely is FUD: the project isn't related to Oracle in any way (or any more than it is related to AT&T, which also holds copyright). Even where there are Oracle copyrights, this is open source, and the CDDL is an air-tight license that (sadly) has been battle-tested by Oracle's own lawyers. Thanks to the explicitness of the CDDL around things like patent, there really isn't much that Oracle can do. And indeed, given the massive Oracle-owned Solaris patent portfolio, the same cannot be said for other non-CDDL systems that may infringe those patents -- illumos is (perversely) the only one actually sheltered from Oracle bad behavior in that regard.
They're both perfectly usable and non-dead, although the situation of distros so strongly dependent on a single vendor each does worry me a bit (I feel more comfortable in the long-term stability of e.g. FreeBSD).
Comments about Oracle are not FUD. Having a project that is in any way related to Oracle is like having a psychotic murderer living in the flat upstairs. People may be understandably reluctant to come over for tea.