Java was supose to be a language for TV. The name for java was supose to be "Oak", but after the founders were drinking coffee one day, changed it to Java. This is what happens when you have a Computer Science teacher that knows more about history than programming.
Yes.
Yes, a lot of Java books talk about that in their introduction section.
It was originally meant to be used by appliances of all kinds, not just TV.
Sounds like an Urban Myth to me.
Actually I think that Oak was a registered trademark so they had to think up a different name.
www.java.sun.com has the history, it's uninteresting and unimportant, but by all means keep discussing.