That last time I tried Google Reader on my iPad a month or two back, I got the standard Web browser interface which didn't work right. Lots of bugs related to the touch interface. Last night I tried it again just for kicks and discovered Google is now serving up the same user interface for both the iPhone and iPad.
Anyway, it seems like they have made some improvements (I could be wrong on that). The touch interface is simple and easy to use. Feeds download quickly. I think feed reader iOS apps are gonna have to improve to justify their cost.