Exactly what I do :). It makes everything damn simple. No matter how many times I install Java, Java3D, Xith, whatever environment, I always seem to run into problems setting it up (usually stuff I’ve encountered before ::)). Just setting up some folders and relative paths and some batch files (or shell scripts) to compile, run, jar, sign, etc. makes it nice and easy – no “install” necessary.
I do, however, use JWS for distribution.