No, no, the KVM will continue to be supported. The KVM is the virtual machine used by the reference implementation of the Connected Limited Device Configuration. What you're really referring to are the unsupported com.sun.kjava classes that have been provided with the Palm port of the CLDC reference implementation. Those classes will disappear, and they're also quite limited. A PDA Profile that runs on top of the CLDC (and hence uses the KVM) is being developed that will completely replace all those unsupported classes. Note, however, that it won't be providing Palm-only functionality, since the point is to have a profile that can span across a range of PDAs, not just Palm OS based PDAs.
See my list of fallacies at
http://www.ericgiguere.com/microjava/fallacies.html to clear up some of this confusion.
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Eric Giguere
author of:
Java 2 Micro Edition : A Professional Developer's Guide PalmTM Database Programming: The Complete Developer's Guide