Java Studio Creator 2 is an update to Sun's Java Studio product, which is a new generation tool attempting to simplify Java development. Java Studio Creator 2 is trying to make the Java platform more attractive to developers coming from a Microsoft Windows or 4GL tool environment.
I still think that Visual Studio .NET is superior to any of the Java tools for Web Services, even if it's only by a little. Microsoft has a clear advantage for rapid application development.
Microsoft is really going to focus on their partnerships throughout the entire conference. They've really courted a bunch of third-party vendors to integrate their tools into Visual Studio .NET. The list of third-party tools announced (at Tech Ed) is going to be long.