TCP definitely doesn't scale as well as UDP multicast.  But whether that is a 
real issue depends on what kind of traffic you have between the nodes. The 
services that generate a lot of traffic over the JGroups channels are

1) HttpSession replication
2) EJB StatefulSessionBean replication
3) Hibernate/JPA entity caching.

1) and 2) can be made highly scalable by using buddy replication.  3) is more 
complex, but there are things you can do as well (use INVALIDATION_SYNC, don't 
cache query result sets, don't cache entities that are frequently updated.)

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