Sure it will, I just wrote about it http://www.wissamidrissi.com/2010/06/google-caffeine-seo.html We will lose lot of traffic unless we turn our websites social so they get updated more often.
Really this will make trouble to people, they can't find what they are looking. People will get confuse to search results.
Some SEO strategies and tactics are going to change, but that's what its all about. Keeping up to date on things like this, and changing your strategies to cope with these changes. This will be a great thing for some, and it will be tough for others depending on the niche their website is focused in. Here is a news update from CNN that explains the change a little more clearly -> http://edition.cnn.com/2010/TECH/web/06/09/google.caffeine/ Also, if your into selling websites / domains, be sure to check out Post It!
Let first Google Introduce the new feature, afterwards there will be plenty of guys talking on the same one on how to make it useful...
It will change the philosophy of how marketers approach search engine marketing, and will place a priority for fresh content. If you were an authority site before, you still will have pull. The effect is dependent on the relative speed of change of your niche, when topics are quickly trending the content and ranking will change quickly, on stable evergreen topics it doesn't affect it as much.
It shouldn't affect your rankings. All it means for your site is that new content will be indexed faster. It's not a ranking algorithm update. It's a completely new indexing system which is faster and better than the old one. More Info: Google Caffeine
it means that Google is able to find new content more quickly and index your new blog posts faster than before and that's good news
Yes it focuses on indexing speed. I just wrote a brief article on the subject myself and what it means for you. http://www.convertingcopy.com/online-marketing-articles/the-effects-of-google-caffeine.html
1st thing twitter is waste of time, and google will work like twitter is good so that google will loose its market, its time to switch to yahoo or bing or any other crap search engines because they will work better from now on.
Google new search feature is now introducing personalized search, there is no matter of losing online business. Also google now index the content fastly.
Ya off course its a really very effected online business. Really its a very helpful for user bse thay searcher and get the same keyword result.