There's various valid arguments for and against using Java to teach programming but I have to say I found that argument to be one of the weaker ones I've seen.
Embedded programming is a niche, a very important niche which makes the world go round, but much of the arguments presented in the argument could probably also be used to complain that universities don't teach enough java as most don't cover the servlet API and web application development and ecommerce is vitally important to our economy etc etc and how unreasonable is it to expect to send a fresh graduate on a training course to learn the specific technology and skills to do the particular job that is needed at that point in time.
A good computer science university course should teach their students how to think, create efficient algorithms and solve problems, ideally in procedural, functional and declarative paradigms to give them a good opportunity to learn new skills and languages later. It should also cover good low level details of how processors and computers work and other theoretical groundings. A reasonable developer should be able then, with some training be able to learn whatever programming language they need, starting from whatever basis they have, most differences between languages are syntactic sugar and convenience. If the person really can't manage to switch from java to C after a reasonable training course then they are unlikely to do well in either language