That would make more sense if there was a competitor that had arisen with better features and taken away users. Looking at the rest of this page, there doesn't

That would make more sense if there was a competitor that had arisen with better features and taken away users. Looking at the rest of this page, there doesn't seem to be any competitor at remotely the same scale as Google Reader. If usage is declining with nobody stealing users, it's less a sign that innovation stopped than the overall market demand started shrinking. In which case, adding more features might not make a ton of sense. There's not a lot of business sense to investing more in capturing a larger share of a declining business.