On one hand I’m tremendously shocked that Google would end a service that people relied on so much, and the other they do have the right to terminate anything that they are giving out for free.
The “Don’t be evil” argument is not even remotely related this so people who bring this up time and again are just whiners, or worse.
Google Reader has been in my Chrome most visited website for years and I would faithfully just click on it when I’m bored to see the list of content providers whose RSS I have subscribed to.
It does make me have lesser faith on Google services though. When would they call an end to life for Gmail perhaps? Will I continue to use free web services? Yes, only to get scalded once more.