Meh, they're going to do what they want. I haven't used Reader for some time, having come to rely on Twitter for managing my news. But I do think it has profound implications for those who rely on it heavily, as well as the public's perception of a company they've come to trust. Windows Live fans have been down this road already with Microsoft.
To me it's more about how Google both exploded the RSS ecosystem and simultaneously crushed their competition. Before Reader, there were a number of other platforms that did the same thing, but RSS was a niche interest. Then here comes Google, doing it for free and suddenly every website added RSS support. At the same time, the ubiquity of Reader drove the little guys out of business. These days if you have an RSS reader app on your phone or tablet, it's probably powered (at least partly) by Reader on the backend. Now, Google is screwing over a whole new cottage industry, just cause they can.
In the end, if there's a lesson to be learned from this, it's not to get too comfortable with any platform or solution, either as a consumer or developer. The cloud giveth, and the cloud taketh away.