No. Android was released with Dalvik in November 2007, when Schwartz's blog post was written.

http://www.betaversion.org/~stefano/linotype/news/110/

Blog post: Nov. 5 Google released dalvik: Nov. 12

So technically Schwartz could have been blindsided by Dalvik.

I'm pretty sure Schwartz was aware of the fact that Google hadn't licence JavaME from them...

How can you be sure? There are other people pretty sure of the opposite

http://news.ycombinator.com/item?id=2809775

Because it would have been a huge deal, the kind of thing they'd make press releases out of. To suggest that the board members of Sun would have been unaware of such a major deal is farcical.

Wrong.