I think Google would be wise to offer a discontinued product to the creator. If they have no interest in Reader any more, then Wetherell should be offered the product.

Possibly he would need to pay something for it (preferably over a long term) or he would be given the source, but absolutely no users / user data.

That way they get innovators to dream big ideas like AdSense, but if those ideas are rejected or later shuttered, the innovator gets to keep his idea.