Google employs a lot of people from academia. Scholar is used and loved by a lot of people within Google. It's been around for two decades. I really don't think it's going anywhere.
Reader was used and loved by a LOT of people WITHIN google, but it was shut down (and the leadership that loved it even made arguments in front of the company why it "had to be shut down").
AFAICT Scholar remains because Anurag built up massive cred in the early years (he was a critically important search engineer) with Larry Page and kept his infra costs and headcount really small, while also taking advantage of search infra).
Reader usage was declining because the application was not being developed. The other reason they mentioned is that it would have required a lot of work to rewrite the app to be consistent with the new user data policies being put into place.