Google has mainly done this to improve search results and as a visitor this is a good feature. I am sure the misspelled domains will have a dip in traffic but as you said the type-in traffic will continue.
In matt cutts recent post he is explaining some changes that took place at google.
One of those changes is that if you type in a misspelled word in google, it will show the top 2 results of the correct spelling before showing the rest of the misspelled results.
However, misspelled domains that are targeted at type-in traffic will still be just as valuable.
See article here: What was new at Searchology?
Anyone owns any misspelled domains? What do you'll think about this change?
Actually, I believe it's at good thing for people that target the right keywords, this new feature will mostly be bad to spammers and to people that intentionnally use spelling mistakes to rank higher.
Yes, it might hurt some sites and companies, such as IPODD (from the example the article), but only a small percentage of the searches will be for that kind of websites (and it stills ranks #4).
Good system change. But in case a company/people who make site name which not mispelled but like mispelled because their want to make it, it will be bad. In order to solve this problem, their may contact google.
Actually if people make mispelled word, google already have a system like this :
If people type cta when typing cat
do you mean cat ?
But with this system, will google still shown that system?
Oh, i'm already see it and i think it's not too annoying since google only list 1-3 suggestion. This is OK, but not too usefull because mispelled case is not too many.
Moderator note: This post was not needed. Please watch it.
What would be good is if they had some sort of system where the site owners of sites like IPLODD could send a note to Google, and the employees could make exceptions. Not always ideal as it *might* upset the whole SERP system, but it means sites such as IPLODD don't miss out.
I just try this google new system and i find it's worked. But for some word, i think it's depend on availability of the misspelled word. If the "suspected" misspelled word is a lot, google will not reference you and shown a suggestion.
For example, "cta" is suspected misspelled word of cat, right?
But google not shown any suggestion.
It's because CTA word availability is so many (7,29 million result)
The same case when we try to search FAT, using misspelled word FTA...