Robin Sharp, in "Annotations: Don't Mess with Java," says that "Annotations are a major kludge on the landscape. They don't fit and we don't need them; but you just know that they'll be picked up by framework junkies and abused horribly."
I’d see a case for replacing XML, and annotations. Annotations will be seen as litter on the Java landscape. One thing that strikes me about the move from XML to annotations is the shift from having a many-one relationship between code and XML to a one-one relationship between code and annotations, as well as the move from weakly-typed to more strongly-typed enforced configuration. I believe that there is a better intermediate solution that keeps a many-one relationship between code and XML as well as strongly typed configuration.

A better solution for Sun would have been to come up with an XML-like structure that could be coded into Java. This would give all the benefits of rigorous type enforcement, and the benefits of a many-one relationship between code and configuration, and the benefits of separating the configuration data out of business objects.

I would see these XML structures as being defined by something with similar semantics to XML schemas, but they would be implemented something like nested static classes containing defaults. When I look at the XML schema semantics and extended Java nested static classes, they do seem like they have similar semantics.

Extended nested static classes would provide type safety. They could be overridden by specific implementations. They could be available to introspection. Configuration would be kept in Java. I believe it would be worth exploring extending the semantics of Java nested static classes to do the job of XML configurations in a more rigorous manner than annotations provide.