yes, the number of Java applications where a single application needs to address more than 4G of memory are few.
remember that visualization is supposed to be the wave of the future, especially for things in datacenters. part of the way this works is that you slice up the memory available on a server to allocate it between many more small servers. most such servers end up with less than 4G per virtual server and what we are talking about for x32 is 4G per _application_ (not counting OS buffering, kernel allocations, or any other overhead) this is a lot more elbow room.
not every application can fit in 4G, but when you really look at it, a surprising number of them will.
and pointer-heavy things like Java are especially likely to benifit from the smaller pointers of x32