Google Reader has made a few pretty hefty changes to the app. Firstly the UI has been given an overhaul with collapsible sidebar lists such as “main links” and “subscriptions”. The header feels slightly smaller and the apps palette is definitely softer.
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You seem to be able to view more stories from your Google Reader homepage view. Fortunately you have now been given the option of hiding unread counts and therefore sites with unread stories appear simply in bold.
The most obvious feature of the overhaul is your “Friends shared items” which has been given a far more prominent position, of course you can collapse this section too.