I have re-introduced the Motion subsystem as well; in general it was more flexible and easier to deal with than streaming video to the webapp itself. HOWEVER - this means that nearly all the memory of a Model B Raspberry Pi is consumed between Apache 2, Java and Motion. In fact, you have to start the webapp before the motion subsystem otherwise motion's memory consumption crowds out the JVM bootstrap.
I don't want the JVM move to be a boat anchor however - I'm targeting support for running within 256 MB of RAM using a Model A. If that doesn't work... I may just have to move back to Python.