It's in fact the default behaviour in GTk. The widgetset uses a relatively small delay to cope with slow typists and in case you made a mistake and have to delete the latest char(s) before admiting (and searching for) the string. When you type some (more) char it "knows" that the previous ones are probably correct, so it acknowledges all but the more recent.
You can see this in, for example, the file manager (Nautilus, Thunar, pcfman, ...): the corresponding file selection goes always a little behind your typing of the name.