I heard from various sources that Java EE is highly scalable, but to me it seems that you could never scale a Java EE application to the level of the google search engine or any
The "scalability" thing talks about "what will you do when your application doesn't fit in a single computer anymore?".
Scalable applications can grow over more computers than one.
Note that large servers can have VERY large applications with lots of memory and lots of cpu's - see http://www.sun.com/servers/highend/m9000/ or http://www-03.ibm.com/systems/i/hardware/595/index.html - but it is usually more expensive than having lots of small servers with the application spreading over them.