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I think it may change the way SEO game is played, but not the end at all. I don't think there will ever be an end. Untill google hires thousands of people to manually rank sites based on their relevance and usefulness there will still be SEO.
They still have bots that will search pages and rank them automagically and we will still be able to manipulate these to a point. The local search thing is completely irrelevant IMO (this is the thing that if I search "springfield PA car wash" it will list car washes in springfield PA). If that is what you mean by local search then it won't since it only lists businesses for the area and then continues with the actuall search listings below.
The personalized thing is an issue, but really unless the person has searched for your keywords many times before and made distinct patterns I doubt that their system would affect rankings by much anyway.
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Cheers, John Irving: My Blog
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