I've been using Digg Reader for a while and I'm actually kind of shocked that most people haven't moved to that. It has its bugs (sometimes showing incorrect numbers, the mobile app locks up sometimes), but it's honestly the best alternative that I've found so far.
Maybe it has to do with its free-ness, as people worry about them shutting doors like Google Reader, but if you're looking for a free solution then I'd definitely recommend it.
The development has been glacial bordering on non-existent since launch on digg reader. The betaworks team that created it was able to do so in a matter of weeks– after re-writing and launching the new digg on a similar timeframe – which makes me think the current lack of progress is because they've moved on to other things (Instapaper, for one).
I've been super happy with Digg Reader. The few bugs I've seen are not that big of a deal. I've never seen anything that an actual page reload didn't solve. I've not tried the mobile app though.
Maybe it has to do with its free-ness, as people worry about them shutting doors like Google Reader, but if you're looking for a free solution then I'd definitely recommend it.