After seeing this news, first thing I wanted to do was to find and alternative. First one I came across is Feedly. It is a web based reader and has plugins for chrome, firefox, safari and apps for android and iOS. Best thing with Feedly is that you can login with Google account and it will automatically import all your feeds from Reader. After getting used to the UI, it seems to be really nice tool. For the moment I'm going to use Feedly.
I'm also thinking about finding a good desktop reader as well. Since I'm using Linux there are lot of readers available. Have to try some and find a good one.