Java can be optimized to be very fast, as is evident by an interview I had recently with a high-frequency trading company, where they do use Java, as well as C++.
Java has OpenGL bindings, as others have pointed out, so getting to the hardware isn't such a problem, esp since not all games need that, some commercial games have been written for Java3D.
You can use Scala or F# if you want some more performance for multi-threaded or numerically intensive operations, and just tie those in with the GUI.
But, as others have mentioned, the tools that are used tend to be written for C++, and some companies feel more comfortable doing some optimizations in assembly, but, given the fact that the new cpus are very complicated, with multicores, it is unlikely you will get any performance increase over the optimizations from the compilers, but, as long as companies feel these optimizations are still needed, they will stay with C++.
If some developers wanted to write commercial-grade tools for Java or .NET, there could be a market opportunity there, but it will be a great deal of work to make it as good as what is already out there.