They're moving on with other plans. They just agreed to pay at least $900 million to News Corp. to be the exclusive SE and text ad provider on MySpace.
They have made a large investment in AOL, I don't think that they would leave the AOL deal over this.
it was AOLs search data anyway not google's.. i doubt your average AOL user has the same search patterns as someone with a normal IQ.
Seems that they are much less likely to be experienced webmasters, so the data may actually be more correct, closer to what the general public would input.
but as more people are getting more web-savvy the quality of search input would increase. AOL users are the primate of web user.
AOL crap, here in UK its crap anyway, and it just laggs your computer, not that i have it. but some of my mates do.. the require THERE software to be ran etc.