This is a long-overdue change, and one that I hope we’ll see rolled out to 2.1 and earlier users, soon. At the moment, I can confirm that it is not available in 2.1, but we’ve contacted Google to see if we’ll get the goods soon.
For many of us, it’s a none-too-soon change. Though the Market search is great, lacking the suggestions function has made it a real pain in the tail on some searches, where applications use naming that isn’t exactly what you’d expect.
Screenshots below, and a huge thanks to Androinica.
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