Yes, Apple's update to Java and its built-in malware protection immediately recognized and removed the threat. However, this Trojan is changing daily. That's why you should just turn Java (not JavaScript) off in the browser. With that off, even if you run across another infected site, nothing will happen since it requires Java to be enabled in order to get on your Mac.
JavaScript performs many, many common web tricks, like rollovers. A rollover example is the buttons across the top of this page. The button turns a darker gray when you roll the mouse cursor over it. That's one JavaScript function. Much of the web would stop working if you turned JavaScript off.
Java though, is used for very little on the web. I've had it off for months and haven't come across any site that wouldn't work without it.