They disabled this perfectly reasonable feature, presumably because of some loathsome person in marketing who felt that users should have to select Reader again from the "More" tab on the little toolbar at the top of the page, forcing them to peruse googles other fantastic services.
Luckily, this is simple to repair using Greasemonkey or some other script manager. Add this script and set it to match against "http://reader.google.com/view/*":
var link = document.getElementById("logo-link");
Use the extra time you save not having to find the reader link in the menu to research alternatives to google services, since it looks like google is going to jump the shark pretty soon.