The new design is definitely cleaner and consistent with other Google products, but it is not a design focused on providing a great reading experience (as the product name "Reader" suggests). It is basically the Gmail layout and interaction model, just different content. I wish Google had taken an approach that deeply focused on the content first (as Flipboard does).
KEEPING IN MIND that I generally hate people who whine every time every thing changes, as someone who is fairly invested in Google Reader, it pains me that this has been a UI step backwards. It's lot less usable; defaulting every link to black, like the rest of the interface, makes scanning for links really painful, and there's still a good 130px of useless interface chrome that is taking up space for no good reason.…
I haven't set up a style for google reader (yet) but Stylish extension for Firefox does a good job letting me customize sites. I don't use it on every site, but places I view regularly I tweak.
I have a style for news.yc http://news.ycombinator.com/item?id=3085416