Until Bing can offer some serious innovations it'll just be another search engine.
What kind of innovations need to be done? Search has always been ridiculously simple: A search box and a button to start the search.
It's awfully hard to be innovative when the best form of the product is the KISS principle taken to its logical conclusion.
The only thing they can really do is to very carefully add features in a way that dosn't distract people from the search box.
I think Bing is finally a good step forward in providing Google with some real competition.
Their search results are finally decent, the new features are nice an innovative without being too distracting, and it looks a lot more professional.
I'd still give Google the edge when it comes to searching for computer related troubleshooting stuff, though. When I'm looking for error messages, it does seem Google gets more results. Especially in really edge cases where there are very few results.
But - I'm a big fan of competition, and firmly believe that competition encourages innovation. I think it's great that Google has some decent competition.