I really haven’t had enough sleep lately… I don’t know how I missed this before. The biggest feature that was added to Google Reader is search! (Finally!) You can narrow searches down by folder, and even specific feed.
There are also some GUI changes, such as being able to hide the left navigation bar with a little arrow, or by hitting U. The screen space will be a welcome addition for when I’m reading through my feeds on my 1024×768 resolution 12″ Powerbook.