No, it is a required function. I think, the JVM in Android probably can do this, but I'm not sure.
But most of them - including all Java EE VMs - simply doesn't interested about this.
This is not so simple, as it seems - the VM is a process from the OS view, and has somewhere a mapped memory region for it, which is a stack or data segment.
In most cases it needs to be a continous interval. Memory allocation and release from the OS view happens with a system call, which the process uses to ask the OS its new segment limit.
What to do, if you have for example 2 gigabytes of RAM for your JVM, which uses only 500 megs, but this 500 meg is dispersed in some ten-bytes fragment in this 2 gigs? This memory release function would need also a defragmentation step, which would multiply the resource costs of the GC runs.
As Java runs, and Java objects are constructed and destructed by the garbage collector, the free and allocated memory areas are dispersed in the stack/data segment.
When we don't see java, but native OS processes, the situation is the same: if you malloc() ten 1meg block, and then release the first 9, there is no way to give it back to the OS, altough newer libraries and os apis have extensive development about this. Of course, if you later allocates memory again, this allocation will be done from the just-freed regions.
My opinion is, that even if this is a little bit costly and complex (and a quite large programming work), it worths its price, and I think it isn't the best image from our collective programming culture, that it isn't done since decades in everything, included the java vms.