Yes I have heard about it. Think about it though. Imagine you type in MP3 player, and it starts suggesting websites. Are those websites going to come from an 'organic/natural' type search feed or a 'paid' one? I can imagine that google will probably work this in somehow, and if they do then I'm not sure how really useful it would be for true search.
Yes, Google suggest is way cool. I love checking the Google Labs and playing around with their new tools. I also find Google suggest to be helpful in choosing keywords.
I heard about Google Suggest about 2 or 3 weeks ago and was going to tell everyone about it cuz it's pretty neat, but I guess I am a little late for that.
I've been using it a lot for searching programming stuff. It's very useful for that. For example, if I write "javascript document.a" it gives you some choices you could search on. If you change "a" for any other letter, it gives you even more choices.
Anyway, I just thought it was nice cuz sometimes I'm just not sure what I am looking for or how to write it so I look at the suggestions given by Google Suggest.
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