Why does this work:
List> list = new LinkedList();
while this gives a type dismatch error:
List
To actually answer your question:
In the first case, "list" holds a list of one particular, unspecified type - in this case, Integer.
In the second case, "list" holds a list of lists, but each of the sublists may be of any particular type, but the following would be perfectly fine (note the types of the two lists being added):
List> list = new LinkedList>();
list.add(new LinkedList());
list.add(new LinkedList());
It's very similar to the reason why you can't do
List
There are operations that would be perfectly valid on your list of lists of ? that would be illegal on the list of lists of Integers.
In order to do what you want (have a list of lists, where all the sublists are unique to a particular type), I think Zed's answer is about as close as you'll get.