Google Suggest is Now Default for Google Search
Google Suggest Tool is now Default for Google Search:

Bad and Good
As users search, Google now gives high search volume terms suggestions. Instead of typing in their own phrases, extremely lazy users will trust Google to do the job. This will send more traffic to websites that rank for competitive keywords, but can harm less competitive phrases which aren’t qualified for Google Suggest Feature.
I don’t think it will hurt long tail search, since its very deliberate, but rather impact 1-3 phrases, making search more uniform.
This is also a way for Google to up it’s quality. By routing people to the keywords of its preference Google can ensure that searches get only high quality results.
Google can also (if not already, which is likely) incorporate algorithm which shows keyword suggestion with highest Ad price or Quality Score, making extra buck on suggested key-phrases. My guess would be that Google places emphasis is on Ad Quality rather than price, knowing its child like care about users. More ads shown, more targeted clicks.
Google is a cold search killer machine. It’s like a trained special operations agent, dressed as an easter bunny. Puffy on the outside, but competition killer on the inside. Microsoft has no chances.
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