Google Reader now supports embedded video from YouTube, Google video and many other sites (MySpace, Jumpcut, Grouper, IFILM, Metacafe, Revver, Vimeo, vSocial, and games from Monsters and Critics).

Official Google Reader Blog: Getting embedded in Google Reader.

This feature further enhances the excellent product that is Google Reader. I use it for all my RSS consumption. If you are still using client software on a pc or mac you should definitely check it out. http://reader.google.com