All E-Business Suite desktop administrators must disable the JRE Auto-Update for their end users immediately to stop it updating to Java 1.7.
URGENT BULLETIN: Disable JRE Auto-Update for All E-Business Suite End-Users.
Oracle Forms is not compatible with JRE 7 yet. JRE 7 has not been certified with Oracle E-Business Suite yet. Oracle E-Business Suite functionality based on Forms -- e.g. Financials -- will stop working if you upgrade to JRE 7.
There is also a known issue with WebLogic 10.3.6 and JDK 1.7 and you must use JDK 1.6 for that. I will be posting shortly on this issue.
Seems to me therefore that until further notice, even for Discoverer, but definitely for E-Business Suite that you must stay on Java 1.6