There are decent readers out there. Liferea or Thunderbird will do in a pinch, and much as I hate to admit it, Netvibes is actually superb. The tragedy isn't some Google tool being retired, the tragedy is the way feeds are slowly disappearing. It's a slow and creeping death, but it's a death. More and more sites are dropping their feeds and replacing them with some twitterish Facebook nonsense. [edit: typo]
RSS feeds were just never easy enough for most people to bother. And not just the proverbial grandma, most techies don't use RSS either. Sites will run analytics and see that nobody is clicking the feed button. RSS certainly solves a real problem, so I think there is an opportunity for reinventing RSS with better UX. Don't ask me how though.
I barely ever click on any RSS buttons. Partially because sites nowadays don't even bother putting one in there, partially because TinyTinyRSS extracts the feed from the site's automatically.
So running analytics on that button would be very misleading, especially for users like me ;-)