It seems pigs can fly.
I must admit I had a few doubts if there would ever be a patch that would fix the FRM-92095 on Forms 10g when running Java plugin 1.7.x.
But here we are - almost a year later and there is a patch for Forms 10g. It seems the patch is already available since November 21 2012. I only picked up on it because of this blogpost by Steve Chan stating Forms 10.1.2.3.2 bundle patch 2 is now certified with EBS12.
Bundle patch 2 is patch number 14825718 and one of the bug fixes is :
# 11782681 - APPS6 FORMS DO NOT LAUNCH WITH BETA JRE 1.7
The patch is basically an opatch which copies new libraries and jar files to your system including a new frmall.jar. It's available for all platforms and is only about 7.5MB.