How Sun could have made money off Java

I started out my career as a Java developer. While I have branched out to Microsoft SharePoint recently, I still do a lot of architecture and development in Java and consider it to be quite handy.
I have always wondered why Sun could not make money off Java after having come up with such a cool and now ubiquitous software. True, they tried their luck with optimizing their servers for Java and so on, but none ever stuck and they have ultimately got themselves acquired by Oracle.
Recently, I started working on a project that essentially is a desktop application (Swing components) with Webstart as the deployment mechanism. I have used JGoodies intermittently for creating rich layouts before and got a chance to use it more thoroughly this time around. As a quick aside, JGoodies is an extremely well-written library and makes your screens look a lot nicer. Combined with a professional tool like JFormDesigner for visually editing the screens, I was able to cut down my design time from roughly 2 hours to 10 minutes!
While I was developing the application, I was able to think of two ways in which Sun could have really leveraged its expertise and thought leadership around Java without irking the open-source community that it has come to rely on so much.
Meta-libraries
First way in which Sun could've made quite a bit of money is by developing a set of higher-level libraries and selling them commercially at a moderate price. For example, developing database applications and managing objects in Java was cumbersome at best until Hibernate and Spring frameworks came into the picture. Sun could've come up with such high-level libraries on top of the core language and sold them commercially. Even now, Swing is relatively bare bones in nature and you have to do a lot of plumbing before anything meaningful is accomplished.
Ideally, if Sun had created such meta-libraries around various scenarios (such as database, desktop, web, etc.) and had developer and commercial licenses (say, $10-$20 for developers and $100-$200 for enterprise deployment), it could have formed a great revenue stream. Optionally they could have milked some more money for any major upgrades (say, from Java 5 to Java 6). I think these price-points would've been more than acceptable for both developers and companies. The core libraries and JVM themselves would still be free and available for all those who want to start from scratch.
Marketing via App Store
Recently Sun released the Java App Store taking cue from Apple and after sitting idle for almost a decade. The App Store is based on the Java WebStart technology, a core component of the Java Runtime Environment that has been around pretty much since the beginning (around 1999, I believe). WebStart is probably the most under-appreciated concept within Java, thanks in part due to the Internet boom that happened soon after its release.
Essentially, WebStart allows you to deploy Java applications via Internet on to your system without needing any .EXE files. Better, applications deployed via WebStart are Java applications that are handled and run by the JRE in the client computer and hence, can be run on almost all platforms that have JRE (which is pretty much every OS out there).
Sun could have used this technology to build an eco-system around the Java technology while marketing the virtues of the language more successfully. Eventually they could've built premium services around the app store creating another revenue stream.
Oh, well!