I also think MS should spin off the entire product, not unlike Expedia. I would love to be able to type a few character and press CTRL + ENTER instead of the "search.msn.com", which is 8 characters more than "google".
I got a weird vibe from this. When I think Google, I think of a huge company with 4000+ employees working on search realted products and services. Then I see this video, and I think "MSN Search - 2 guys in an office." Not the best advertising, is it?