Well, mostly fixes my issue…
Although going to the www.google.com/reader/m on my N95 still redirects to the iPhone version, www.google.com/reader/i, the iPhone version now contains a settings page that allows external pages to be reformatted for better display in a mobile browser.
Much better. I still prefer the /m version of the mobile reader over the /i version, but as long as I don’t have to wait for the bloated ad heavy external pages to load in the mobile browser I’m pretty happy. The mobile version of Google Reader is usable for me again.
Update (September 23, 2008): Google has removed the redirect from /reader/m to /reader/i for both iPhone and Series 60 users (N95 and other Nokia smart phones). I am happily using the old /m interface again.