Firefox's (non extended) approach to RSS seems the best to me.
You drag the lil RSS icon from your address bar to your bookmarks toolbar (or click "Subscribe to Blah.rss") and then it creates a dropdown menu of all the titles in the feed. Each title takes you to a permalink of the story.
I use it to keep up with: my own blog, my girlfriend's blog, my band's news page, bbc news page, support threads in the wordpress/binairy bonsai/vanilla/my crappy VCR forums.
All content, you don't have to trawl through an entire page- just nice tidy links.
Comments
Sage opens itself in the sidepanel (simply press Alt+S or via the menu item) and you can add new feeds like storing a bookmark. Really cool extension.
update: Oups, while reading through this thread I just saw lech is using it, too.