Looking at yum source code, it seems that for resolving dependencies it looks for repository only, and not to the RPM database.
Incorrect. Yum looks at the package requirements and dependencies. One would hope all deps exist in the repository, however in the case of java and jpackage this is not always possible. Yes, you need an external package to satisfy the dep.
This is yum 2.4 in CentOS 4.3
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