Richard MacManus made a good point.
Google can't embrace syndication because they're so heavily dependent on advertising on web-pages. They'll experiment with ads in feeds, but this is unpopular.
In this sense, RSS is disruptive to Google. It's a technology which their business model won't let them get into.
Update A pedant writes : "how is RSS a challange to Google's own business which is search?"
Answer : Well, there are several RSS-like search competitors. Things like Technorati have been searching blogs and feeds for ages. Google was slow into blog-search. Or here's a recent idea OPML Sampling, which essentially runs a popularity-based (PageRank-like, though courtesy of Yahoo) search within a set of feeds (defined by an OPML file).
New searches, not made by Google, because Google doesn't want to engage with something they haven't yet figured out how to sell ads on?
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