Yes, but if you change the term to 'Search Engine' you probably get the Big G back up in it's rightful place again!
So what ? if they are in serps not in number 1 They are a brand name no need for geting traffic from theyer own search engine
I'm sure they are not getting hurt by it, just a matter of the humor in it. Kind of like seeing a Chicken McNugget as the first item on a Taco Bell menu...
Why do you need for results in the keyword "search" if you're already in google. That doesn't make MSN #1 then.