Google Instant will have implications on both SEO and PPC. SMM, email marketing, and online media buying would stay as before so it is good to start making use of them more.
Some people will stop typing when a brand name comes up in search results, others would choose any of the suggested long-tail keywords. Either way, there searches would be more refined, and the traffic would be split between multiple websites. In any case, I don't think the old system of "Get to #1 Spot and get 65% of the traffic" would continue any longer.
I believe Google introduced Instant feature not just to reduce the time it takes for people to find information, but to curb Blackhat SEO, MFA sites etc. too. No longer would a handful of keywords dominate a niche, but one would have to focus on adding quality content. Information which would help the visitors- taking into account what the Google Instant suggestions are.
As far as PPC is concerned, the impressions would increase and the clicks would decrease. This would decrease the quality score and hence the CPC would be slightly higher. However, with more refined queries being entered, chances for higher conversions would be better than before.
IF Google Instant becomes a permanent feature, then SEO would have to evolve. Keyword strategy may require a change, and focusing on the cluster of suggestions offered by Google Instant and trying to gain the top spots for the same would become the new goal of SEO's worldwide.