point of having an instance variable as final?

Two reasons:

1) From the class design view, it allows a programmer to rely on the fact that the field will not change since instantiation - so called "immutable object" (where applied to class members, not the object's reference). Java tutorial says:

Immutable objects are particularly useful in concurrent applications. Since they cannot change state, they cannot be corrupted by thread interference or observed in an inconsistent state.

Immutable objects are a cornerstone of various programming styles, e.g. pure functional programming.

2) The second reasons is JVM optimizations. If all fields are final, then JVM knows the object's state can't be changed, and thus it can make many optimizations, e.g. ommiting thread safety checks etc.

Nope. static means it's the same across all instances of the class. final means it's not assignable after its initial assignment. So two instances could have different values for a non-static final variable.

There are many reasons you might want to make a variable final; one of the best is clarity. If I read a method and notice that the foo is final, I don't have to worry about where it's changing down below - because it isn't; it can't. I can make more changes to code with final variables with less concern ("did I change the value of foo before or after bar, and does it matter?") because I know that some variables aren't subject to change. It also focuses my attention on the variables that are subject to change - and they're the ones that deserve more attention.