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I have been using "Feeds" for this. Very nice, simple. It has been updated frequently and each update has addressed the things I felt were lacking, so they are listening to users.

Newsstand is neat. But except for people who track a very small number of feeds, or until apps can run in the background on the iPhone (allowing the app to periodically pull down feeds in smaller chunks), I suspect we're never going to see an iPhone RSS newsreader that isn't plagued by speed issues. I've yet to find any RSS app that compares for speed, presentation, and functionality to either Newsgator's or Blogline's mobile web pages, as imperfect as they are.

I bought this app based on this review. It is indeed fun to use, but I have 3 issues with it:
1- It is much slower with the same feeds than Feeds is
2- I wish I could turn off those 2 enormous buttons for "Flagged" and "Unread". I don't need them and they break the otherwise clean UI
3- I can't figure out how to move feeds into folders

@@Handycam
To move feeds into folders simply go into edit mode (while being on the level in which the feed lives), tap the feeds name and then tap the location chooser (below feed name and URL) - this will allow you to select from all existing folders (and the root-level being "Feeds"). You can move entire folders the same way. Target folders must exist first (creation via "Edit" - "+" - "New Folder").
All that is described in depth in the help file under "Organizing Feeds".