If search engine is present therefore Search engine optimization will also present. Search engine optimization will only end up when search engines are going to be dead.
instant search will not change a thing, the basics are still the same, Google still look for quality back links, unique content and constant updates
Not entirely true. Google instant can change search behavior and can affect long tail keywords in the longer run thus can change the entire SEO game in the future. Remember that Google is all about improvements and changes and that includes SEO as well.
Again, not entirely true. If Google Instant can instantly change everything shown by just adding or removing keywords on the search bar - how do you think the Paid search would be displayed as well? People would then go crazy for AdWords and will try to get as many generic keywords as they can. Again, Google Instant has changed Search behavior and will undoubtedly change the way SEO is in the future. You can also try posting experiments or findings here before you say that Google Instant does not affect SEO before telling everybody that it doesn't without anything to back your claim. @aleale - There are some countries that have experienced Google Instant results without turning it on. I am one of those people who have and you don't turn it on, if you don't like it - you have to turn it off. I guess Google is really trying to implement Google Instant in most countries and soon the whole world for good.
As many have said, it will not effect SEO. Maybe PPC... but some people are intent on spending so much on wasted PPC campaigns that Google Instant could be a major eye opener !!