I think you don't fully understand. They aren't just doing a search based on the key being pressed down. They already did a search based on the previous characters that returned results for all possible next characters. So by the time you type a second character it just checks results locally from the search that had likely already been returned from when you had typed the previous character.
There are a large number of edge cases where rendering it on key down would not be desirable (user types Ctrl+v, how accented characters are enetered, how some Asian languages get handled, backspace/delete, user holds a key down, etc). This is getting into the point of optimization where it simply does not matter and can actually harm things