This was really implemented to allow the use of development-time checks that could be easily removed when a system went to production. For example, you could write code that looked like this:
When the system went to production, you could easily change the single line to set the variable IN_PRODUCTION to true and all of your development debugging code would automatically cease executing.
Obviously, you'd never use a while statement for this type of work, so it was only necessary to make if(false) compile - while(false) could still generate a compiler error.
Today, there is no need to do this. With
Java 1.4, you have the capability to use assertions to do this exact type of thing for you.