Most importantly, I'm writing it all as open source. The iPhone app I'm writing, the feed parser and fetcher, and the front-end reader are all on GitHub: http://github.com/samuelclay/NewsBlur/
Awesome work! I'm definitely using this over Google Reader from now on!
But there are few tiny details I hope will be fixed soon: The "Original" tab is the default one - which slows down the whole thing if I open some content-heavy site, and the reason why I use feed readers in first place is not to have to watch those horrible sites at all, so it would be nice if we could change the default view.
The other thing is that there is no way to change the folder to which certain feed belongs. As well as someone before me commented, you can't delete feeds either.
The default view is the last used view for that feed. I'm planning to have that in later today.
Drag and drop moving feeds is coming sometime this Summer, but you can delete a feed right now. There is a "manage" button at the bottom of the feed bar.
It shows the original site, allows you to read as you normally would, but keeps track of the stories you're scrolling past.
It also allows you to filter stories based on what you like and dislike about them: words/phrases in the title, tags and categories, authors, and the publisher themselves. There is a slider that allows you to show/hide stories based on this filter. It's very fast, too.
I am writing an iPhone app so you can use NewsBlur everywhere. It's just a hobby project, and people have so far been impressed. But I would love for NewsBlur to become a useful tool that people choose to use.
I wrote it because I was also dissatisfied with readers, especially Google Reader. I also knew Python (Django!), JavaScript, and wanted to put them together to test my abilities.