Michael over at Techcrunch wrote a great article about the search wars. The post is mostly about Marissa Meyers recent comment where she statet"that 90% of search is solved."
Personally I think that Marissa is somehow right. I would have said it a little different: Search is for 95+% of the population already sufficient.
Deep Web, Semantic Search, Picture Recognition are all nice things, but they all won't be as disruptive as the past 10 years have been.
Having said that I agree with Michael. We need more innovation. The search industry in general is at a point where innovation is happening very slow, probably due to the cost that are involved to hire search engineers.