Sounds to me like he's talking about Google Reader itself.
It's posted in "Friends of the Unofficial Google Reader API"
and he says: "I realize that we're using an unofficial API, so we have no right to
complain about any changes to it (instead we should be thankful to have been
able to use it for so long). But at the same time, the Reader team is well
aware that developers such as myself are using their API in our software,
and some of us rely on this software to generate an income."
I guess I just have a slightly different idea of the meaning of 'misleading' and 'asking'.
Now, if he really was talking about google reader being retired, and not just the API, that would mean that he in no way, shape or form could have read the blog post he himself initially posted a link to.
My best guess is that it simply is a poor choice of words, and that he figured since he was posting on the webpage of the API, he simply skipped the word API.
Google ditching Reader API makes more sense as a possibility than Google ditching Reader all-together.
Why does that seems suggestive of retirement? They're obviously optimizing this bar for my mom and not people who know what, and how to use Reader. "Calendar", "Documents", "Photos", "Web" (which takes you to google.com and changes the top bar)--those are smart choices for that bar, as they appeal to everyone.
All they're saying is: "We're integrating Reader more tightly with G+ but if that integration offends you, here's how to take your data out."