Google has done a lot of research to show that speed matters quite a lot to users. When results appear in less than 250ms the user is much more satisfied than even 500ms. Anything less than a quarter of a second is thought of as "instantaneous" and the user starts thinking of it very differently.
Here, they are taking it down to less than 100ms, which is now operating faster than the user can even perceive (for that matter, it's faster than many users can type). So the real effect is that they have now eliminated the need to click on "Search". So now Google is even more interwoven into your thought processes, and other search engines are going to seem unbearably slow pretty soon.