As Google's blog post outlines, you need to go to www.google.com on your mobile device and then go into the Settings to configure this option. You do NOT need to sign in to Google. You just need to go there in your mobile web browser.
I've tested this on both my iPad and iPhone and found it worked quite well (per the blog post and Help Center page, it also works on Android phones and tablets - and is available in 27 languages). I find it particularly useful on the iPad where you have the larger screen to write on. On the iPhone, maybe my fingers are just too big but I found it tight to write in the regular portrait mode.
I did notice, though, that you can enter one or two letters, pause, then enter another letter or two... and as you do the search window is updated with what Google thinks the text should be as well as search query suggestions. So you may just be able to write a few letters and then tap the correct search suggestion.
Now, the question, of course, is WHY I find this interesting and the answer is that I have had some times when I'm in situations where it's not super easy to type nor do I want to be talking to my phone (i.e. using Siri). With the iPad, in particular, there are times I'm holding it while walking around at an event where typing with two hands would not be easy and voice usage isn't really possible. I could see this potentially being faster than hunt-and-peck typing a query using one hand. Will I use it all the time? No... but certainly I can see it being nice to have this option.
What's also interesting about this feature is that it requires you to go to "www.google.com". It doesn't work with the "search" box that is in the top of Mobile Safari in iOS. You need to go to Google's home page... so Google is pulling you out of using the app (Safari) and into using their web page. If you get used to doing that, Google can of course introduce other functionality - and if you are "signed in" you see your Google+ notifications and can easily access other Google services. Intriguing move by Google.
What do you think? Will you use this capability on your iPad, iPhone or Android device?
P.S. Alas, it is not as all-powerful as TechCrunch asserts with an ability to interpret cursive handwriting. I made several attempts at using cursive and found that in some cases the accuracy was "okay", but clearly not as good as block printing. In fact, Google's Tips for Handwrite very clearly state at the beginning that you should use block printing versus cursive.
And here is Google's video on the topic:
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