I am pretty sure I read the demise of google reader was because it's hard to make money off of RSS/Atom and harder to bolt adtech on top of it.
Google had wave, blogger, orkut and other things. It's not like they didn't test different things or try to emulate others. They just failed edit: they failed with g+ I mean
I am more amazed at how microsoft had the messenger brand and how it's now facebook's. It's mind boggling. And ms had a blogging strategy at some point.