Can confirm that it's working on the Paperwhite. Just delete the system/Search Indexes directory, and create a system/Search Indexes file instead. The only effect that I found so far is that it fills the log with error messages whenever it tries to index something, but that's not really an issue. And it's not happening often, either - as far as I can tell, only when a new book is added and when the device goes into screensaver mode.
PS: I assume that it will be working on the PW2 too.
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