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Since the main bugs are now fixed, I like iReadG very much - although it links into google reader, rather than being a pure RSS reader (I find it much nicer to stick all my rss feeds through google reader anyway). There's a free version on the store, the paid one just removes the ads so far as I know.
 
I use Feedly on both my Mac, and iPhone, and find it does the job very well, and allows sharing anything interesting with your social networks very easily too.
 
pulse news

I used to just use the google reader on my phone now I switched to Pulse. Its very well designed. And free.
 
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