Yes, neglected. More features isn't the point, nor is whether I personally like it (disclosure: I still use it every day). Google Reader is apparently not being developed; it's in "maintenance mode" and run by a skeleton crew.

What kind of development does it need? It does what it's supposed to do, no?

I'd be content if they added back the feed/folder autocomplete on the search box which was removed after the UI refresh.

Interesting -- I never noticed it did this.