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IIRC it is not Java itself that is insecure, but the Java plugin for browsers.

Apple is only disabling the plugin, but the bug affects all Java, not just the plugin.

It's more likely to strike in the plugin, since the plugin runs Java code on any website you visit.

But if you were tricked into downloading a trojan horse Java app, and run it using the JRE (Java Runtime Environment), it could exploit the same security flaw.
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