It's a little known fact that Reader and iGoogle are siblings. They share some parents (hi Steve!). They've both been growing up fast since their respective launches in mid-2005. They even sat next to each other for a while.
When we heard about the iGoogle team's plans to have a canvas view (allowing for much richer content), we thought it would be great to help a brother (or is it sister?) out. We therefore took on the task of powering iGoogle's new canvas view for feeds. Now you can get the same powerful Reader interface for any feed in iGoogle, complete with keyboard shortcuts, expanded and list views, infinite scrolling and embedded videos.
For those of you who are Reader users already, the Reader gadget has also been updated to take advantage of the canvas view: you can now share, email and browse through your folders and subscriptions, all within iGoogle.
You can see both the new feed view and the updated Reader gadget in action on the updated iGoogle.