BlogBridge (Java, cross-platform) and Awasu (Windows) are desktop apps, although they have some sync capabilities over the web.
News Alloy, from what I've seen, seems to be on the brink of bankruptcy or at least a permanent shutdown (yet they claim to have found a "potential" new investor).
I'm probably about to settle for Google Reader. Strong points for Google Reader are (1) the "river of news" display and (2) that it works with every browser I've thrown at it so far (IE, Safari/Shiira/WebKit, Camino/K-Meleon/Gecko, even Opera). What could be improved: It would be nice if this Google (!) offering had search. And they could add some more Gmail-esque sorting and filtering/rules options (like starring or tagging by keywords).
I don't care too much for tags per se and the bunch of keyboard commands. Many people regard these as huge positives.
laughinglizard, could you please explain which scripts you use? Might be useful for others as well.
Another option I'm considering is buying into the NewsGator family with FeedDemon (Windows), NetNewsWire (Mac) and NewsGator Online for keeping everything in sync. But I really dislike their subscription model (seems you need a paid online account to activate any desktop component you "bought" from them) and NewsGator Online is s-l-o-w.
If it weren't for a usable online reader component, I would look into BlogBridge to keep several machines in sync. The desktop is free and they offer several plans to sync machines via the web, including a free one (limited to 300 feeds and 2 syncs/day, AFAIK). Never tried it, though.
I also tried GreatNews for their claimed ability to sync with Bloglines. But that seems to be one-way only. As a standalone app, GreatNews isn't too bad. Unfortunately, I couldn't find out how to enlarge the font for list view which looked tiny to me. Oh, and most desktop apps seem to work with IE as their internal browser. Don't like that.