First Google should release the code to its RSS reader, don't be evil.
Second the end of Google RSS feeder is not the end of RSS on any level. On a consumer level an RSS Newsreader was just bought a few days before by LinkedIn.com for serious cash. On a backend level so much of what google now does relies on RSS. Most of their shopping system is based on this. Many other technologies are also built upon RSS delivery including lazy ticket aggregators like fansnap.com.
So much relies on RSS it isn't going anywhere despite what lazy journalism has to say.