The Digg Reader has been around for a few weeks now, and it's getting better. Of course, considering how many features it missed at launch, it's going to have to do that for a long while to come before getting close, feature-wise, to Google Reader.
Still, the additions of a "view only unread" items option and a "mark as unread" button are very welcomed. They are two of the most basic options that Reader users expect, and the fact that they weren't available at launch is disappointing.
But Digg only had a few weeks to build its new service, so a few missing features were to be expected. The Digg Reader offers a rather solid experience and looks fairly slick. When it also gets a feature-set comparable to the now defunct Google Reader, it may become a competitor to Feedly.