I doubt they ever targeted the console or the desktop market.
Ummm.....in fact, the original target for JSR134 was for consoles and PCs. J2ME CDC not CLDC, which is for mobile phones.
And for commercial arguments for using Java, the developers of Law and Order actually convinces Universal that using Java was the right thing to do because they saved so much money in development (code and time) that they were able to pour more money into assets. So there is a REAL business advantage to using Java for commercial games. Maybe not all games, but quite a few