One issue in this specific case might be that Google has way more than enough money to keep Reader alive, whereas many people on HN see their own startups fail due to financial troubles, and if they do make it to an exit their products are often killed by acquihires. Wealth is wasted on the wealthy and all that.
It feels like a betrayal because we thought Google shared our values. Really I don't think this is about entitlement at all. Using that word in this context amounts to shaming people about the anger they feel over a breach of trust. Entitlement is more like having your parents fly in to demand the university raise one of your grades so you can get in to medical school.