Did you read the documentation for the places API?
http://code.google.com/apis/maps/documentation/javascript/places.html#place_searches
From my read, that behavior makes perfect sense:
+ Place Search Requests
+ Place Searches are initiated with a call to the PlacesService's
search() method.
+ This method takes a request with the following fields:
+ Either of:
+ bounds, which must be a google.maps.LatLngBounds object defining the
rectangle in which to
+ search; or
+ a location and radius; the former takes a google.maps.LatLng object,
and the radius takes a
+ simple integer, representing the circle's radius in meters.
And for autocomplete:
+ Adding Autocomplete
+ The Autocomplete constructor takes two arguments:
+ An HTML input element of type text. This is the input field that the
Autocomplete service will
+ monitor and attach its results to.
+ An options argument, which can contain:
+ types, which can be either establishment or geocode, representing
businesses or addresses,
+ respectively. If types is not specified, both types are returned.
+ bounds is a google.maps.LatLng object specifying the area in which
to search for Places. The
+ results are biased towards, but not restricted to, Places contained
within these bounds.
-- Larry