People who program for operating systems including Microsoft use c and c++. Its the right speed for the job. And at OS level you see no .net crap. Thats ms not eating thier own dog food.
However Java has other merits and shouldn't be tared with the same brush, they are both languages normally used for business apps.
What would you consider top of the line development environments? Mine is vim, web browser, compiler and a build tool:make or ant.