Earlier quoted context omitted.
It's the GPL that's incompatible with the CDDL and not the other way around, which is an important distinction. Other than other GPL variants and BSD and MIT style licenses, the GPL has restrictions which make it pretty much incompatible with everything.
I don't get how the word "incompatible" can be understood as anything other than both license has aspects which makes combining them impossible. But owell, lets see what the license text actually say: Any Covered Software that You distribute or otherwise make available in Executable form must also be made available in Source Code form and that Source Code form must be distributed only under the terms of this License.…
There is a CDDL v1.1 that is effectively 's/Sun/Oracle/'. The CDDL has an optional clause saying any later version is allowed and the CDDL only applies at the file level. I have yet to see a problem in mixing CDDL code under v1 and v1.1 with each other.