gouri - 3:00 am on May 12, 2010 (gmt 0)
In my humble opinion update is yet to come when they reindex all pages,update backlinks etc. What we are seeing in google is just a change in infra and layout.
I agree with you. I think the switch to Caffeine has two parts to it. The first part is implementing the infrastructure change that Caffeine is supposed to bring, and making sure that when it is on all datacenters, Google can handle the load.
The second part of Caffeine is reindexing the pages that have been in Google's datasets as well as addiional pages (I believe the Caffeine infrastucture is supposed to allow for deeper crawling). When all of this indexing is complete, the backlinks to websites will be updated and I think the second part of Caffeine will also include some small ranking algorithm changes. The fact that there will be a deeper crawling of the web will also lead to some ranking changes but this will be separate from the ranking changes produced by the small ranking algorithm changes.
After the second part is complete, we will have an idea of where we stand in terms of rankings for keywords.
The change to Google's layout brings additional web surfing options but I think this is separate from the Caffeine update.