Instead they killed their popular Reader and made Orkut and Google Plus.
I think the problem with RSS was - and still is? - is the data it provides. A social network can harvest MUCH more data (due to the endless number of connections between "the nodes.") RSS is too old school.
Put another way, imagine being hired by Google - while FB and Twitter are taking off - and being told you're going to work on a new & improved RSS reader. That would have triggered a mass exit.
I never got why people moved to Twitter, it wasn't, and isn't, as good at consuming or sharing content as Reader was. It's just one more step towards the more centralized web we have today, and hopefully we will move back to a more decentralized experience soon.
[0] http://googlereader.blogspot.se/2009/03/google-reader-is-you... [1] http://googlereader.blogspot.se/2011/10/new-in-reader-fresh-...
I wasn’t a heavy RSS user, but had a few bookmarks in Firefox – and the same thing is doable today.