Java's heap is nothing more than a big data structure managed within the JVM process' heap space. The two heaps are logically-separate entities even though they occupy the same memory.
The JVM is at the mercy of the host system's implementations of malloc(), which allocates memory from the system using brk(). On Linux systems (Solaris, too), memory allocated for the process heap is almost never returned, largely because it becomes fragmented and the heap must be contiguous. This means that memory allocated to the process will increase monotonically, and the only way to keep the size down is not to allocate it in the first place.
-Xms and -Xmx tell the JVM how to size the Java heap ahead of time, which causes it to allocate process memory. Java can garbage collect until the sun burns out, but that cleanup is internal to the JVM and the process memory backing it doesn't get returned.
Elaboration from comment below:
The standard way for a program written in C (notably the JVM running Eclipse for you) to allocate memory is to call malloc(3), which uses the OS-provided mechanism for allocating memory to the process and then managing individual allocations within those allocations. The details of how malloc() and free() work are implementation-specific.
On most flavors of Unix, a process gets exactly one data segment, which is a contiguous region of memory that has pointers to the start and end. The process can adjust the size of this segment by calling brk(2) and increasing the end pointer to allocate more memory or decreasing it to return it to the system. Only the end can be adjusted. This means that if your implementation of malloc() enlarges the data segment, the corresponding implementation of free() can't shrink it unless it determines that there's space at the end that's not being used. In practice, a humongous chunk of memory you allocated with malloc() rarely winds up at the very end of the data segment when you free() it, which is why processes tend to grow monotonically.
