I'm looking into two alternatives. Feedly and NewsBlur. Both have mobile apps so that's nice. I'm researching and testing them now and I'll let you know what I find out.
Okay. I just spent some time check out the two options that I found and I'm putting my money and my blog favorites in.....FEEDLY! Now only is it super easy to use and import your old google reader, but it has a mobile app that is easy to use. AND they have already addressed the problem on their blog. WINNING!
Go to their blog here to find out how to seamlessly change over your reader.
I just posted a tutorial about how to use Feedly.