Not bad for a start...

-Needs to grey out read articles.
-The reader page when opening links doest have the ability to magnify text.
-A royal pain to add RSS feeds--you should be able to just import from Apple Mail/Safari/Firefox.
-Have an option to have number of headlines shown per feed,
-Allow user to arrange different feeds better.

For 99 cents, a good start, though.

Eric Davis about Headlines