Google Reader is a tool for you to subscribe to various different sites that publish news and articles of interest. The benefit of such a thing is that you can find everything you want to read on a daily/weekly basis in the one place, the convenience factor compared to navigating from one site to the next is obvious. Another benefit is that it all appears in a simplified, easy to read format, this may be beneficial if the source website is very cluttered and/or full of flash/video/high contrast graphics, that make you hate using the actual website and take away from the enjoyment of the experience.
Basically you subscribe to a 'feed' from a given website, and every time something new is published, it will appear in your Google Reader.
A quick rundown in plain English
Personally I subscribed to a couple of tech news websites and sports site. These sites have several contributors who have daily or weekly columns on a given subject, I enjoy reading them as they all have their own personal opinions and backgrounds that shape the manner in which they deliver their piece. The joys of Google Reader is that they are all just there waiting for me, I don't have to go digging through each section of each site to find them.
There aren't too many negatives about this service, you could say the design is a little bland, and has that generic Gmail feel about it, so if you aren't a fan of that then you may find this to be a downside. The only real drawback I would mention is the clutter that develops if you stop reading for a given time, however you can obviously just unsubscribe if you no longer wish to read from a given source.
My recently neglected Google Reader item count
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