I've had a long love/hate relationship with RSS. For something with 'simple' as part of its name, I feel like it really hasn't lived to its each potential.
I've used Google Reader (horrible) and NetNewsWire and a plethora of mobile RSS-readers. I read a lot of news from a lot of sources (68 total sources in my NNW?) and as much as I do want to go in and read EVERY single article some days, other days I'm just tired by the 2500+ articles that pop up.
Pulse seems to be on the right track to do something. Anything else going down that path?
What's wrong with RSS Readers today? Why do they suck?
Is the solution to a better RSS Reader something more visually appealing (ie: Pulse) or something that simply filters the news (diggv4 or HN)?
Two things will emerge from that exercise: 1. there probably is in fact a reader out there that meets it, you just haven't found it yet or 2. your requirements require solving the AI-complete problem of perfectly determining what you are interested in.
Generally I find most people slot into #2. I am not kidding. I've been listening to this complaint for about 8 years now and every time I've worked with someone, it's one of the two above, and usually #2.
A third possibility is that you are just trying to read too much, period, if even an AI-complete filter would still leave you with too much. The suck may not lie with the software, it may in the requirements.