Sorry to sound negative, but this company is so dead. Their PR people (you know it's the work of PR people when you see a lot of stories about something that hasn't launched yet) are just making things worse, by raising everyone's expectations.
Sounds pretty likely. It'll be hard for them to make much of an impact. But who else is working on innovating in basic search? Seems like everyone is working on social or vertical or presentation aspects. So they're well set up for an acquisition, I think by someone who wants to become a major search player but isn't there yet.