I'm sure he's really hurting with his billions...It's pretty clear from interviews that he and Kathryn are on friendly terms. He convinced her to make the movie after reading the script and made notes on her rough cut.
Yeah hes often commented on how theyre friends right now. Hes been humble about it, probably realizing she had a good chance. He told interviewers its a win win scenario for him because he gets to see a good friend win an oscar.
Not to mention I dont see how Avatar even got nominated... buuuut anyways...