Ok, this annoyed the heck out of me, so I had to find a resolution. Check this out:
Go to your Marketplace. click on the magnifying glass as if to search. Notice all of the results that show up there? How annoying! I had so many random things listed in there because other people were searching for apps testing out my phone that I never knew if it was appropriate or not to hand someone my phone and let them search! It was making me crazy because there is no direct way to delete the search history.
Also, after looking at various Android devices at retail locations, I could see that apparently there isn’t a widely known history cleaner. (There were some pretty obscene things in these phones!)
Soooo, thanks to Zodttd for searching the marketplace, and Google, we have located an app that does just this, and more. Its called History Eraser. It is a free app and it has options to delete history for your google search, marketplace, call history and more. check it out in the Android Marketplace.