I've looked and seen no sign of the features yet. I did try the "Add Content" window with My MSN but couldn't find Search Engine Watch or a few other sites with RSS feeds listed. A search for RSS itself, however, did bring back 17 matches from major news sites, such as the Washington Post.
It sounds like the new blog search engine that MSN has promised may take over to provide better matches from across the web sometime this week. Moreover is cited in the SiliconBeat story as powering the blog search.
Yahoo already provides feed reading capabilities and a feed discovery service -- though a full-blown, dedicated blog search service there hasn't yet happened. As said, MSN has promised it would do this. If it materializes on the MSN Search site itself, it will be a new chapter for search engines.
Google's also promised long ago that a blog search service would emerge, but that has yet to materialize. My past post, MSN's Third Portal To Gain Blogs; Where's The Blog Search?, summarizes past promises and capabilities from all of them.