The Java security problem is with the applet browser plugin though and the only problem(allthough it is a serious one since applets can launch without the users consent) is that the sandbox can be circumvented (giving a applet the same level of access as a native application). Its not a problem with proper java applications (Which should have that level of access anyway since it is launched explicitly by the user)
You can convert your JARs into EXEs using Jarsplice or similar tools, but it is fair to assume most people will either have java or wont have a problem if your installer prompts an installation of the JRE.
This used to be true; not so much any more, at least so far as Apple goes. Apple has outright disabled Java on newer releases due to security problems.... or at least, that's the excuse Apple gave. I honestly wouldn't be surprised to see Microsoft follow suit. When you've got the Department of Homeland Security telling people to disable/remove Java, that's all encouragement Microsoft needs... if their lawyers give them the go-ahead that is.
Java is still out there on all platforms, it's just not quite so simple to assume its there as it was even a year ago.
Apple still removed it as a result, not just the plugin.