

NOW they're working on a new search engine project which they have nicknamed "Caffeine"...it will replace the current Google search engine but will look pretty much the same. It will be faster and more accurate, with better index size. Google opened up Caffeine today for web developers to test out, and when testing & tweaking is complete it will become the new and improved Google search engine."Right now, we only want feedback on the differences between Google's current search results and our new system," the company wrote. "We're also interested in higher-level feedback ("These types of sites seem to rank better or worse in the new system") in addition to "This specific site should or shouldn't rank for this query." Engineers will be reading the feedback, but we won't have the cycles to send replies.
"It's the first step in a process that will let us push the envelope on size, indexing speed, accuracy, comprehensiveness and other dimensions," Google added.
Users can test out Caffeine by doing a Sandbox search here and clicking the "Dissatisfied? Help us improve" link.
This news sounds great, but it has the potential to be disasterous for those who do SEO for themselves or others who have been trying to master the ever-changing formula for getting on or close to the first page in results.
Click here to view the Google blog that unveils this.
And as for articles that talk about this news, well...you can Google it 
Just kidding-- some good ones:
http://blogs.computerworld.com/14521/google_caffeine_reinvents_seo_microsoft_bing?source=rss_blogs
http://blogs.zdnet.com/BTL/?p=22546
http://www.pcworld.com/article/169973/Googles_Caffeine_Should_Give_Businesses_The_Jitters.html
I think all of what you said is true--#1 i know a few SEO's who are going to pull their hair out for a while. and #2 i remember seeing an article by a web developer who was giving feedback about Caffeine and said that he got fewer search results when he compared Old google to New, but that it was good because they cut out the yucky ones.
And yes, he used the word Yucky
jk
~karma: i'm countin on it~

Olympus
Single & Not Looking
Oooooh, this is gonna make SEO's NUTS, (including me)
But it's good news. I remember when Google used to be relatively new, and it was almost magic how it nailed the exact thing you'd search for in the number one or two result. These days it's getting slightly less accurate, and sometimes what I'm looking for doesn't even show up. Maybe Caffeine will make it more like the old days again.