I don't think I agree with your analysis. C# was originally designed to look a lot more like Java than Java ever looked like C, but it hasn't been hampered by that and has evolved to be a much more advanced language than Java has. It also doesn't have the over-engineering culture that Java has (aside from a number of "Enterprise-Class" add-on libraries Microsoft has tried to push out.)
The same could be said about Ruby and it's relationship to Perl and Python. It has cultural roots in those languages, but is often regarded to be better rather than worse. (As a die-hard Perl developer I disagree, but I don't hold a grudge.) All three are also considered to be C-like languages too, and they don't suffer the problems Java has.
One could argue that Java's problem was that it was designed for programming VCRs, DVD players, and Cable-TV boxes, and similar equipment, but the got stretched and pulled into environments it just wasn't ready for. That, plus Sun's hyper-aggressive marketing machine to turn Java into the language-for-everything, created the beast that it has become.
My personal view is that Sun turned Java into a programming language for charge-by-the-hour consultants. The culture of over-engineering exists because it takes a lot more time to design software that way, more time and larger teams to implement software that way, and specialized hard-to-transfer knowledge to maintain that kind of software. This all benefits the consultants and hurts the companies paying for the software to be built, which only makes sense if Sun was intentionally pushing Java that way.