How will Google Instant Search Effect SEO?

With Google's announcement today that they are implementing Instant Search on their desktop search, we have to wonder how this new feature will effect all of our hard earned SEO efforts.

Google Instant Search now shows results as you type your search query. It is a great new feature and should save all of us searches lots of time.
350 Million (with an M) hours of our users time to be exact. However in the same panel discussion the panelist were mentioning how user behavior will most likely change over time. For instance, users may be more likely to explore more options around their search term, since they will see more results as they are typing. This may actually lead to more time spent in Google (exploring vs. searching maybe?). Which of course means more eyeballs on the ads that Google is serving.

So while they have confirmed that this latest fantastic new feature does not effect search engine ranking results and will not change the way that the algorithm works, it does have the the potential to change user behavior and thus may present some new opportunities for SEO.

How about optimization for your key phrases, minus the last few letters? This could allow your website to always show as your target audience is typing. You wouldn't want them to get a glimpse of a competitor before they have even completed their search? Would you?

As usual, it looks like we have our work cut out for us.