I fear that Java will have to be abandoned to the "Enterprise Development" world. It will be relegated to the hands of cut-rate business coders bashing out their gray business applications for $30 / hour. We've passed the tipping point on this one. We used to joke that Java would be the next COBOL, but that doesn't seem as funny now that it's true. Java will continue to exist. Millions of lines of it will be written each year. It won't be the driver of innovation, though. As individual programmers, I'd recommend that you learn another language immediately and differentiate yourself from the hordes of low-skill, low-rent outsource coders that will service the mainstream Java consumer.
I don't see things quite as drastic as this, but I totally agree that knowing Java as your only language is no longer enough. (Be sure to check out the whole piece, full of interesting predictions).