Yes, that's Google's new Instant Search running on the Motorola DROID 2 above. Google's just announced it on the desktop (and rolled it out immediately), and said mobile versions of Instant would be showing up this fall. Say hello to auto-complete with every search!
Those at the announcement were able to download a prototype Android version of Google Instant, and here it is running on a DROID 2. Of course there were some glitches (like the search software stopping when the phone lost 3G for a bit). The biggest concern looks like screen room.
Three results instead of the five you'd get on desktop, and even that may be tight. Remember the DROID 2 has a pull-out keyboard. Virtual keyboards will just eat up that space under the search bar. Other than that, it was pretty quick.
The software should work on "any AJAX-capable mobile browser," per a Google product manager. That's good, I was wondering if it would be restricted to Android OS 2.2 because if it needed Flash.
Remember, fall begins in just two weeks!
Source: Engadget (including images)