Facebook’s launch of Microsoft Live Search integration marks a new phase of the company’s increasing battle with Google. As the Facebook Platform vs OpenSocial and Facebook Connect vs Google Friend Connect platform wars evolve, so now a new battlefront is forming around search. In the very least, the Facebook integration should boost Live Search’s query volume and share of searches over time - and provide a nice boost to Facebook’s bottom line.
I also noted earlier that Microsoft are getting advertising exposure on the site, I came across an ad where by hovering the cursor over the thumbnail would play a short clip. It worked well and it's one of the larger advertising placements I have seen on the site but it wasn't too intrusive. One other aspect to know is that the News Feed now seems to be importing blog posts that are submitted. Not noticed this before but an entry from this site appeared in my partners feed earlier and I also had several imported notes visible as well from friends!