I've been fortunate to only get screwed twice, first with Gowalla and now with Google Reader. Although I used Google Reader for longer and much more frequently than Gowalla, in a way I feel less screwed (if at all) by Google. Google Reader is a very portable product by its natural connection to RSS. Google has also taken a few important steps towards making data portable for it's millions of users.
It took less than a minute to transfer to another service. I'm testing out Feedly for now, but I would rather host my own RSS reader and take control myself. If a consumer product provides adequate data portability the idea of hosting my content for me is something I feel perfectly comfortable doing.
My point is its less concerning that everything is free, but more how anti-competitive these services are with my data. If I can at any moment retain control and back up everything or move it over to a competing service, I'm okay with investing time in adopting a free service.
However, moving your data between services as they inevitably shutdown does seem like a short term fix. I think Marco's idea for a mirror of the reader API is a great long term solution[1]. For the average user, people would probably opt for a popular host. For people who want to host it themselves (probably a minority), they could do so with ease.
[1] http://www.marco.org/2013/03/14/baby-steps-replacing-google-...