The focus of this and other comments here seems to be to critique how this UI works for the majority of Google users. IMHO there's room for several alternatives interfaces for any popular service.
> 8% surveyed (by Google) in Times Square knew what a browser was
So 92% need the UI that works for them. There should also be a UI for the 8% minority that Google is, who know to hit enter for submit.
We've come to value multiple interfaces adapted to the client device. Isn't it time to have interfaces adapted to the skill-set of the user as well?