Yes, there are at least 4 layout options now plus tuning options, including one that is pretty indistinguishable from Google Reader’s compact list view (this is what I use).
I think that was one of the first things they ended up adding, since power users were pretty clear we didn’t want a magazine view.
I hated Feedly back in the day when I was trying to find a replacement before GReader was taken from us. I settled because it was the “least bad”. But you’re 100% correct at how much better it’s gotten.
To this day, I am still bitter about Google Reader.
Don’t get me wrong, Feedly has come a long way and I pay for it because I like it but Google Reader was just so easy and I could recommend things to friends so much easier. Nowadays, I have to decide if it is worth sending via email. However Feedly has grown since its early days and they take suggestions. Their mobile solution is much better than what I had to work with on Google Reader but that could be just because everything is better now on mobile.
I still think: RIP Google Reader.