Its unbreakable if thats the only context that exists.
But looking at the use case, if there is any other script which access the innerHTML of this value then its exploitable in IE6,7 & 8.
Heres how,
IE treats the Grave Accent (`) as a delimiter like " or ' , whenever IE uses innerHTML to access the value.
So something like this pretty exploitable.
----------------------------------------
Hi you searched for
<div id="one">
</div>
<div id="two">
<input value="`` onmouseover=alert(1)"> // XSS inside value attribute which does exactly what you said, encodes only " to "
</div>
<script>
document.getElementById('one').innerHTML=document.getElementById('two').innerHTML;
</script>
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As I said its only context dependent and uses the IE bug and relies heavily on the use of innerHTML later on (Which is a possible scenario in the example you provided)
Other than that it looks unexploit-able to me.