I love, love, love iGoogle. It's exactly what I needed.
It will definitely help me keep up with reading, especially sites where I am always chronically behind: The Diary of Samuel Pepys, The New York Times Book Review, and friends' blogs. I already see it's helping me keep up with hard news, too. At the very least, it saves time and clicks.
I'm using tabs to organize groups of gadgets, and for now I feel no need to use Google Reader or another feed reader. The gadgets are pretty cool: there are tons of useful or fun tools you can stick on your home page. Or not.
And after playing around with iGoogle yesterday and today, I don't think it will become a Project unto itself.
I notice that many of us use Blogger, and Google Reader, iGoogle, Google Maps, Google Earth, and so on. But we all use Flickr, a Yahoo product. But does anyone here use Google's Picasa? I opened a Picasa account when I first started blogging, as it was the only way I knew of to post pictures. It was clumsy and time-consuming, and often didn't work at all. Once I found Flickr, there was no contest. Yet I never use Yahoo for anything else (although I've belonged to a few Yahoo Groups in the past).