Bundleware... Pay Per Install (PPI) in industry terms... can make you a lot of money. I regularly get offers of up to $2 per install to bundle things with PortableApps.com. I could make millions in just a few months even at more industry standard payment levels. It would kill the project and hurt my reputation, of course. But it can be tempting when you run a free open source project and you're falling behind on your rent.
Google likely pays Oracle quite a bit for the default bundleware installations of Chrome. It's a way for Oracle to profit off the userbase installing Java for free and for Google to increase Chrome's share. Fun fact, Google pays Adobe a lot of money to bundle default installations of Chrome with Flash downloads as well.
That's weird... doesn't Chrome come with a custom build of Flash already? So if you download flash, you download Chrome, which in turn downloads flash?
Yes and No. Chrome comes with its own version of Flash installed. So, when you try to download Flash for your copy of Firefox, it automatically downloads and installs Chrome (with its own copy of Flash) unless you uncheck the box in the middle of the download page. Adobe doesn't care, they get paid by Google. And Google pays to increase Chrome's market share.