Another day, another Google application: this time an RSS reader. I have been playing around with it this morning. The early verdict: it's fairly good but nothing earth shattering. What I like about it is you can easily import subscriptions from other readers - I imported my FeedDemon file within a couple minutes - and the user interface is straightforward. One feature I would have liked to have seen Google implement is search within your own subscriptions - as opposed to just search for new content and the Web. The bottom line is it's your typical Google service: simple, no-frills and fast. If you want a plain-vanilla RSS reader and like using Google, it will do the job just fine. If you want something with more bells and whistles and a sexier user interface, you'll probably want to use something else. Personally, I'll continue to use FeedDemon on my PC and laptop,  and perhaps use Google Reader when I'm on the road without a laptop.
At the very least, it makes you wonder why Google took so long to get into the RSS reader game. With all its financial clout and army of PhDs, you would think Google would be faster to market. Then again, their modus operandi has never been "first out of the gate". Search is the best example. They got into the business after Lycos, Hotbot, et al but quickly crushed any rivals because their mousetrap simply worked better. Then again, Google hasn't enjoyed the same kind of success in other markets: e-mail, comparative shopping, social networking, etc. One service where I think they could have done so much better is Blogger.com. Given its popularity and the explosive growth of the blogosphere, Blogger has so much more potential than just a free tool. You wonder why, for example, Blogger has yet to introduce premium services for people who want more than just a simple publishing tool.