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Search will die. It is a middle man in the flow that is Thought>Search>Suggestion>Decision. Someone will figure a way to jump from Thought to Suggestion>Decision with no need for Search.
We're quite a few years from having a DWIM button in your browser.
Search will be a fundamental part of the Web OS, whatever this buzzword ends up being defined as. You can argue an office/productivity suite is also fundamental.

For a company to ensure it plays at the Web OS table, it needs a hand to compete in the search market. MS knows this and they're trying to - literally! - buy their seat at the table. Google earned its seat, and Yahoo! seems content to be kicked off its seat.

does O'Really really believe his own hype2.0 ?