1. Install 7u11-b03
2. Install 7u10-b16, ended up with there's a higher version....which is correct
3. Uninstall 7u11-b03 by removing /Libraray/Internet...../Java...
4. Install 7u10-b16
5. Open JCP, disable Java, provided correct root password
6. Confirmation dialog said Java is only disabled for current user.

Below is the console output:
========================

11/16/12 9:12:46.177 AM securityd: We are an active session owner.
com.apple.message.domain: com.apple.securityd.UserActivity
com.apple.message.signature: userIsActive
com.apple.message.signature2: system.privilege.admin
com.apple.message.result: failure

11/16/12 9:12:46.301 AM SecurityAgent: system.privilege.admin|2012-11-16 17:12:46 +0000
com.apple.message.domain: com.apple.SecurityAgent.DialogFrequency
com.apple.message.result: noop
com.apple.message.signature: java

11/16/12 9:12:49.902 AM authorizationhost: java is not entitled for com.apple.ServiceManagement.daemons.modify
com.apple.message.domain: com.apple.SecurityAgent.Entitled
com.apple.message.signature: java
com.apple.message.signature2: com.apple.ServiceManagement.daemons.modify
com.apple.message.result: noop

11/16/12 9:12:49.936 AM authorizationhost: java is not entitled for com.apple.ServiceManagement.daemons.modify
com.apple.message.domain: com.apple.SecurityAgent.Entitled
com.apple.message.signature: java
com.apple.message.signature2: com.apple.ServiceManagement.daemons.modify
com.apple.message.result: noop

11/16/12 9:12:49.956 AM authorizationhost: java is not entitled for com.apple.ServiceManagement.daemons.modify
com.apple.message.domain: com.apple.SecurityAgent.Entitled
com.apple.message.signature: java
com.apple.message.signature2: com.apple.ServiceManagement.daemons.modify
com.apple.message.result: noop

11/16/12 9:12:49.975 AM authorizationhost: java is not entitled for com.apple.ServiceManagement.daemons.modify
com.apple.message.domain: com.apple.SecurityAgent.Entitled
com.apple.message.signature: java
com.apple.message.signature2: com.apple.ServiceManagement.daemons.modify
com.apple.message.result: noop
=======================