The Java warnings have not been resolved and are not likely to be. Part of the reason has to do with some security issues inherent with Java in the browser. Dragmath is slated to be removed from from Moodle in 2.8 for some other reasons.
If you are using Moodle 2.7, then the new editor Atto comes with a new equation editor that is usable with a little facility with TeX syntax. If you are using Tinymce, there are some other options. WIRIS provides a plugin if you have a commercial license with them or for limitted personal use. Mathslate which I maintain is a free plugin. Neither require Java in the browser, and both are in the plugin directory under Tinymce plugins. They are both also usable with Atto.
In addition TeX notation can be produced by any number off offline tools or websites with the resulting code pasted into any of the editors. Some teachers may be happy with this.