With the advent of Google Chrome, Google made it easier for users to search using the address bar, or what they call the Omnibox. However, it looks like the omnibox in the latest Canary version of Chrome has undergone a drastic change. The new omnibox in Google Chrome canary for Windows replaces two key components from Google Search; the search box and Google Instant and brings it directly to Chrome.
The search box has been a significant part of Google search for more than a decade and allowed users to type in their queries and view results. However, Google moved towards making the search box obsolete by introducing the Omnibox in Google Chrome and it looks like they are completely abandoning it now.
The latest version of Google Chrome Canary (Version 27.0.1446.0 canary) now directly uses the Omnibox as a search box and does not redirect to the usual Google search page as it did earlier.
Additionally, it also does not replace the search keywords with the Google URL like it did earlier and continues to display it in the omnibox. The omnibox now also fully supports Google Instant with suggestions as displayed below. Earlier Google Instant was partially supported with no suggestions comping up for the entered terms.
The new omnibox is definitely an improvement over the search experience since it now provides a single input for searching keywords as opposed to two (the address bar and omnibox) and also brings the power of Google Instant and its suggestions to the address bar.
The feature is currently in its infancy and only exists in the Canary version of Google Chrome. However, given the build lifecycle of Chrome, this might make it to the stable versions of Chrome pretty soon.