First, a clarification, Java is not fully static-compiled and linked in the way C++. It is compiled into bytecode, which is then interpreted by a JVM. The JVM can go and do just-in-time compilation to the native machine language, but doesn't have to do it.
More to the point: I think interactivity is the main practical difference. Since everything is interpreted, you can take a small excerpt of code, parse and run it against the current state of the environment. Thus, if you had already executed code that initialized a variable, you would have access to that variable, etc. It really lends itself way to things like the functional style.
Interpretation, however, costs a lot, especially when you have a large system with a lot of references and context. By definition, it is wasteful because identical code may have to be interpreted and optimized twice (although most runtimes have some caching and optimizations for that). Still, you pay a runtime cost and often need a runtime environment. You are also less likely to see complex interprocedural optimizations because at present their performance is not sufficiently interactive.
Therefore, for large systems that are not going to change much, and for certain languages, it makes more sense to precompile and prelink everything, do all the optimizations that you can do. This ends up with a very lean runtime that is already optimized for the target machine.
As for generating executbles, that has little to do with it, IMHO. You can often create an executable from a compiled language. But you can also create an executable from an interpreted language, except that the interpreter and runtime is already packaged in the exectuable and hidden from you. This means that you generally still pay the runtime costs (although I am sure that for some language there are ways to translate everything to a tree executable).
I disagree that all languages could be made interactive. Certain languages, like C, are so tied to the machine and the entire link structure that I'm not sure you can build a meaningful fully-fledged interactive version