Night Squad 2. It's quite good. Gouessej should know this, I distinctly remember him posting in a thread about it...
Sorry you're right.
Nothing at the moment if you ask me.
It is easier to write cross-platform (for computers

only) games with Java, then it allows to make games for Mac and Linux too. There are enough people who want to play on Mac to get some more cash.
Doing full-blown FPS is a lot of work. I know that because I work on one
Good job, it is really impressive!
No DirectX binding.
It is not a problem for the PC market on my view. I admit it becomes more complicated for consoles... However, don't forget that the PS3 has a version of OpenGL-ES as far as I know

In terms of FPS, as mentioned above FPS are very resource intensive needing really custom level design and modelling which are not programming tasks. Also there are no decent Java based FPS engines and tools for what is out there are nowhere near.
You're right about artistic resources but there are some general 3D engines written in Java, they could be used to write a FPS. The problem is the lack of tools around them, we are very far from Unreal SDK. We need some tools for the spatial subdivisions, some editors... There is a BIG difference between a true FPS engine and a general-purpose 3D engine.
NB: night squad 2 is really the best Java FPS I ever seen, and for once a finished game !!
Tesseract is a finished game too.
2. shouldnt you know ALL of the dificulties better than any of us

Some guys has gone farther than me in terms of gameplay, it is obvious. For example, Tesseract is more interesting than my FPS, there are several levels, more enemies... jezek2 has been doing something really good, I'm impatient to give it a try.