Earlier quoted context omitted.
I'd love to give The Old Reader a try... but when signing in through google, they seem to want "Manage My Contacts" permission.. there is no legitimate reason for needing to see my contacts to sign up. I'm pretty mindful of Android app permissions as well.
I think they've replicated the social features of the old Greader, so they want your contacts so you can share with them.
If it said that it was asking for it and why, I may have allowed it, in any case it doesn't seem to ask for that anymore... :) Now, if my import would process already.