Even though Google Reader is just a Google Labs project, you’d expect that if they were going to make improvements (they recently did), one of the improvements would be the ability to search Google Reader.
I doubt Google is focused on video and search is no longer important, but it seems rather idiotic to not offer a search box for the RSS feeds. They’ve got the data, they’ve got the search engine, it just doesn’t make sense for Google.
I think it’d be great to get search results in typical article/feed format, 1 line at a time. Google could insert 2-3 ads at the top of the search results based on the search terms, in 1 line format, and everyone would be happy. Google could monetize the product and add ad inventory, and I could find relevant articles without reading all the garbage, especially on Craiglist.
By the way, Google Reader is a RSS reader that allows you to keep up to date on your favorite sites. MyYahoo is a good starting RSS reader, but it has had recent problems with common RSS feeds that they haven’t bothered fixing. Your SEO consultant probably wants you to provide a RSS feed for your website.