Is this a bug or feature?
Looks like undefined behaviour. I know that, in practice, you can change the default encoding using a command-line property, but I don't think what happens when you do this is defined.
Bug ID: 4153515 on problems setting this property:
This is not a bug. The "file.encoding" property is not required by the J2SE platform specification; it's an internal detail of Sun's implementations and should not be examined or modified by user code. It's also intended to be read-only; it's technically impossible to support the setting of this property to arbitrary values on the command line or at any other time during program execution.
The preferred way to change the default encoding used by the VM and the runtime system is to change the locale of the underlying platform before starting your Java program.
I cringe when I see people setting the encoding on the command line - you don't know what code that is going to affect.
If you do not want to use the default encoding, set the encoding you do want explicitly via the appropriate method/constructor.