Google launched Google Reader earlier today. It joins an already crowded field of RSS readers (and Google's personalized home page and sidebar apps have RSS/feed readers embedded in them; over time integration will be key). RSS readers have implications for newspapers as destination sites.
Over the phone, and without having seen it until about 30 seconds ago, it sounds like it has a great many nice features. Google says it's easier to use and more intuitive than most of what's out there. It's search-driven and allows users to "search for new content" (MSN's Start.com has a similar feature) and subscribe to feeds without any understanding of RSS, Atom feeds or XML.