Cross-platform development is in a better place now than it was when Java first tried to tackle that challenge.
I'm not a huge fan of maintaining installed software, though -- if you have a silent auto-updater, that's not bad, but otherwise you're going to be either annoying people with frequent updates, or supporting (often accidentally) scores of old versions all the time.
What else is there besides Java that can run in the browser and do audio recording, MIDI input, realtime audio DSP, etc.? Obviously not everyone wants fancy audio capabilities in the browser, but I imagine there are plenty of other "niche" capabilities that other people need that are impossible in the browser w/o Java.
I do get a sense now that we're going to see the Java security hole largely closed (thanks to browser limitations and Oracle fixes), but the damage has certainly been done.