I've waited with migration away from Google Reader until the very last minute since none of the alternatives felt right. When Google finally pulled the plug on Reader, my main contenders for replacement were the new Digg reader and Feedly. After a bit of evaluation I've opted for Feedly since it seemed a better match for my reading habits. After two days of using it I think I made the right choice. Importing data from Google Reader was a breeze. One just logs in to Feedly with Google account, allow Feedly access to Reader's data and all your feeds are automatically imported. Feedly does not offer option to browse individual feeds until you organize them into categories. This felt a bit superfluous at first, but now I'm very glad I did since organizing articles into categories provides for much better reading experience. I usually start checking oldest articles in a feed/category first and then I proceed to the newest. Feedly provides a great way to do so using keyboards shortcuts (press '?' anywhere in Feedly to access handy description of available keyboard shortcuts) and after a while my content consumption process started to feel very efficient.
I was evaluating Feedly already in the past but I never liked it because it required installing browser extension. With the new "cloud" interface Feedly offers a great content consumption interface. In addition, Feedly provides excellent Android and iOS applications (though iOS application is currently experiencing some issues) which is something I missed a lot with Google Reader.
Pulling content from original news sources is important for all of us who want to have unfiltered understanding of our environment. With the 800-pound gorilla gone, we are entering a new renaissance of news readers, it seems. Thank you, Google! Now please do the same with Google Alerts, FeedBurner, Blog search, Scholar, Analytics, and every other product that is too small for Google to care and too big not to suffocate the entire niche.
So, what did you choose instead of Google Reader?