RSS is still alive and kicking. Seems like no service has been able to make it gain as much traction as it should.
The recent Google+ integration into Google Reader made the product take a step backwards. Then you have apps like Reeder (which was my favorite at some time), Pulse (became my next favorite), and then Flipboard (which has won me personally).
Except, I feel like something is missing from all of them.
Google Reader has this awesome Sort by Magic feature, but seems to have been broken recently. If applications could use this sorting method and bring in social better (the integration is lacking right now) it would be awesome!
Isn't that kind of a contradictory statement? RSS is far from dead as far as I'm concerned. I agree that the RSS reader space is very crowded, but Reeder was a late entry, and it is, by far, my favorite RSS reader.