i always go with what fits the theme. sometimes square is the better fit and sometimes rounded looks better. I don't have a preference one way or the other most of the time. It just needs to look right with the rest of the layout.
everything looks squared on this layout.. I would go squared or at the most 2 or 3 radius. just looks odd to me being that rounded with everything else so squared.
With the rest of the site being rounded, I think the current search fits rather nice.