My belief is that, in order for RSS / ATOM to really catch on, we need to completely abstract those concepts for the end-user.
In my opinion, getting people to care about RSS / ATOM is like getting them to care about HTTP. They do not care about the actual mechanisms - only the end result. That being said, I think all we're missing is GREAT product design. Too many pipes are still exposed and it scares away the average user.
Make webfeeds as intuitive as social media giants and we have a revolution on our hands :p
PS: would love to build this with someone if there's any takers :)