that's exactly what happened. The biggest reason this was a bad mood for Google was because the entire tech journalist brain trust was so dependent on it. They spat on the people who can be the most fervent defenders of the company.
As a business owner I pay them through adwords so I don't expect them to shut it down any time soon.
The problem with GReader is that the industry never bothered to produce a quality alternative until now.
I could use my choice of clients on different platforms and as Reader was effectively a monopoly, all the clients would sync with it, allowing me to view the same list of feeds whereever I was - and more importantly, keep those lists up to date with new feeds, and which articles I had read.